South Korean Unions Urging GM To Keep Cruze In Korea

Derek Kreindler
by Derek Kreindler

Labor leaders in South Korea are scrambling to convince GM to retain production of the Chevrolet Cruze in South Korea, though GM says that the move to 5 global facilities is a done deal.

The Cruze accounts for between 50 and 60 percent of the 260,000 vehicles made at GM Korea’s Gunsan plant. A new Cruze is expected to hit the market in 2014, and the new model is expected to be built in Europe, the United States and other locations across the globe. European production of the Cruze will be an important step for GM to help ease some of its overcapacity problems.

South Korean union workers have used strong rhetoric when discussing the Cruze’s future, stating that it is the “lifeline” of the Gunsan plant (GM has two other plants in Korea) and that “…it [GM] will face enormous resistance…” from workers if Cruze production leaves South Korea.

With an all-new model due at the end of 2014, GM is exploring other options including “…continuing to produce the current Cruze model.” Hmm…

Derek Kreindler
Derek Kreindler

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  • JD-Shifty JD-Shifty on Nov 15, 2012

    I want to know which of the factories make the employees look clean cut and wear matching golf shirts

  • Corntrollio Corntrollio on Nov 15, 2012

    Let them eat kimchi (and while they're at it, they should give me some too for my bulgogi and soondubu, yum). Financially it makes a lot more sense for GM to make the Cruzes elsewhere.

  • Daveainchina Daveainchina on Nov 17, 2012

    I wonder if GM has plans for another model to be produced in South Korea or is it just idling that plant capacity permanently. Does producing anything in South Korea hold benefits over say, Thailand or Vietnam?

  • Lorenzo Lorenzo on Nov 18, 2012

    The "new" Cruze to be built elsewhere, but the "old" Cruze to continue to be built in Korea? GM has done something like that before, but the "new" model had a new model name, while the "old" model with the old name was the stripped, advertised loss leader for dealers who could talk customers into going upscale, the stripped model destined for future fleet sales. That would hold off Korean plant smashers for awhile, maybe until there's enough money for a new model to keep the Koreans busy. It just might work, but what would the "new" Cruze be called - Cavalier? Celebrity? Chevelle? (assuming they stick with the letter C).

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