By on November 7, 2012

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.

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23 Comments on “GM Expected To Move Cruze Production From Korea To Europe...”

  • avatar

    I’m going to send RE-ELECTED PRESIDENT OBAMA a letter asking why we can’t normalize relations with CUBA…possibly even North Korea and Iran.

    Could you imagine how much stuff we could sell those people if we lifted these sanctions in the name of dimplomacy?

    Iran and North Korea probably wouldn’t be bothering to seek nuclear weapons if America wasn’t bullying them through starvation and sanctions. Can anyone even give me one reason we are still in embargo with Cuba???

    • 0 avatar

      The only reason no one likes Iran is because of AIPAC and AIPAC hysteria. The self-proclaimed most powerful foreign relations lobbying group on Capitol Hill. North Korea is much more vicious and dangerous and you hear nothing. And you can bet it only cares for Cuba for vacations.

    • 0 avatar
      Secret Hi5

      I’ve always wondered who would be the first US prez to have the balls to begin a thaw with Cuba, but the politicians are afraid of the Cuban voting bloc in Florida. Hopefully that bloc will shrink to irrelevance sooner than later.

      • 0 avatar

        Secret Hi5

        Cubans were actually LOVED by the republicans because they were all anti-communist. Now that the anti-hispanic, anti-mexican hysteria has many White americans afraid their vote will eventually nullified by the hispanic vote, I can see your point about Cubans as a voting bloc being feared.

        Thing is, OBAMA won again and most likely got a huge chunk of hispanic vote. It’s obvious that fear has already become a reality. Might as well talk with the Cubans.

  • avatar

    Don’t feed the troll. This article had nothing to do with Cuba.

  • avatar

    Why not boost the production in Lordstown, Ohio and add jobs, here?

    • 0 avatar

      Good point, unless they feel Lordstown is already properly utilized.

      • 0 avatar

        or because trade limitations, ie tarrifs, mean it is not economically feasible to export vehicles outside the usa. it is one of the reasons increased audi production will happen in a new plant in mexico vs. additional production/expansion at chatanooga (or however it is spelled).

  • avatar
    Angus McClure

    Two thoughts:

    The first is that GM is robbing Peter to pay Paul.

    The second is that now that the debacle that was the 18 months of the election is over, it is time to stop talking political pap on this site. The connection between the above comments with the thread is very nebulous or nonexistent.

  • avatar

    no way this can be cost effective. once politics and owenship of the GM were mixed we find it difficult to extract the two.

    • 0 avatar

      Not sure about that – there would be cost savings per car from increasing the utilisation of the German plant versus remaining at a low level, plus the saving in shipping (presumably the cars produced would be for the EU market). I understand there is a fair bit of commonality with the Astra so it would be relatively easy to implement.

      Also, reducing Cruze production could free up the South Korean factory to build something else, depending on its current level of usage.

  • avatar
    Secret Hi5

    Can one make generalizations that cars assembled in Country A are better quality than cars made in Country B? If so, then would shifting production from Korea to Germany improve or worsen quality?

    • 0 avatar
      el scotto

      I think quality would remain about the same whether the car is being built in South Korea or Germany. I think the real reason are much more mundane. It’s a shorter flight from Detroit to Germany, beer/wine is better, they’re 5-6 hours ahead of Detroit. Less time in the air for executives and you can can come in and read reports early in the morning and then get on the phone and yell at people in Germany.

  • avatar

    I agree, the real reasons may be driven by the albatross called the European connection of GM. GM has to do something to keep their European labor occupied. They’re draining the kitty faster than a running toilet.

    And it is also a way for GM to reward the South Korean unions for their disruptiveness. If this comes to pass, I think it is a prudent and smooth move on GM’s part.

    And if it doesn’t work out for some reason, GM can always count on another taxpayer bailout to move forward.

    • 0 avatar

      Until the day when they put their ID card into the Federal ATM and it comes back ‘insufficient funds’.

      • 0 avatar

        Naw man, the feds will just print more money. That is what’s been happening all along; hence the weaker dollar.

        The “new” America is a reality now and we all better learn to adjust, adapt and overcome in order to live the lifestyle we want to live. Or we’ll be wards of the state until we die.

        GM is doing just that. GM is adjusting, adapting and hopes to overcome the malaise in Europe, albeit with the help of the US taxpayers, by throwing good money after bad and robbing Peter to pay Paul.

        GM knows that the US government has their back so they can make bold moves like moving production from South Korea, a bustling industrial nation, to Depression-stricken Europe. A totally risk-free maneuver on GM’s part.

        Not so good for South Korean unions though. But they, too, shall overcome. They’re in better shape than Europe is.

        GM can’t touch US production in any manner because of the bailout and nationalization of their debts but they had to stem the financial drain that is their European operation. GM can’t lose because the taxpayers will nationalize their future losses as well, if they miscalculated.

        The bottom line remains with the new car buyers whether to support bailouts, handouts and nationalization by buying GM products, or not.

        With so many excellent vehicles to choose from in the market place the question remains if this move will actually sell more cars for GM. And that’s what’s it all about.

        They got to sell each product at a profit, and I’m not sure that the current sales levels of GM products will actually cover all the bills AND generate a profit that will keep GM solvent and viable without taxpayer involvement.

      • 0 avatar

        American consumers continue to buy and will continue to buy GM vehicles regardless if they hate GM or not. They pay for their “GM cars” but do not get cars in exchange. How they do that – by paying taxes.

  • avatar

    Here’s the thing. Everyone wants his way. All of the countries that GM produces cars in gripe and moan when production moves away. The same is true for Ford. But GM and Ford are corporations and they have to make profits. Something’s got to give…or everyone will lose.

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