GM’s German union chief wants the company to move production of the Mokka baby SUV (aka our Buick Encore) from South Korea to Europe. The reason? Because it would help with overcapacity in Europe.
Wolfgang Schaefer-Klug, Opel’s works council chief told Reuters:
“The Mokka would fill an important gap in our Spanish plant, and help to improve utilization there … This volume was never supposed to go to Korea in the first place…Opel has taken out 600,000 cars in capacity and cut 12,000 workers since 2006. Additionally, two engine plants were closed and several lines were taken out in European sites, reducing capacity even more.”
As TTAC has documented in painstaking detail, Opel is screwed in a serious way and that capacity was eliminated because it needed to be.