GM told Reuters that it won’t build the next-generation Chevrolet Cruze in South Korea. Reuters says this is “raising the possibility that GM might shift the assembly to Europe to help boost efficiency at its money-losing unit there.”
The next-generation Cruze is due in fall 2014 as a 2015 model. A GM Korea spokesman confirmed that the new Cruze will not be built in South Korea, but he kept mum on where the car will be built instead.
The current Cruze model makes for half of about 260,000 vehicles produced at GM Korea’s plant.
For many months, there had been rumors and leaks about GM moving production from its South Korean former Daewoo plants to Europe, to keep some of Opel’s idling capacity busy. When the rumors surfaced, South Korean unions threatened to “wage a war” if GM shifts output to Europe.