Unions Want GM To Make Mokka In Europe

Derek Kreindler
by Derek Kreindler
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unions want gm to make mokka in europe

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.

Derek Kreindler
Derek Kreindler

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7 of 14 comments
  • John Rosevear John Rosevear on Nov 14, 2012

    I'm getting the impression that Herr Schaefer-Klug needs a firm thwacking with the clue stick. (Isn't that why GM put Bob King on Opel's Supervisory Board last year? To impart some hard-won clue to the IG Metall crew? But I digress.) On the other hand, moving a ton of production to Europe would get some of those very expensive GM factories above breakeven. Not as good as dumping the whole mess on Peugeot and walking away, but now that that seems to be off the table, it's something to consider.

    • See 1 previous
    • John Rosevear John Rosevear on Nov 14, 2012

      @alluster All true. I'm glad it's not my problem to solve.

  • Analoca Analoca on Nov 14, 2012

    If the car is to be sold in Europe, it would make sense to build it there rather than crossing the ocean (add'l lead time and freight cost). I understand the Spanish GM plant is quite efficient and perhaps could produce below Korean cost considering all the factors of the equation...

  • Robert.Walter Robert.Walter on Nov 14, 2012

    Old way to reduce capacity in Europe has led to current situation. Better way to reduce it is to reduce plant and personnel capacity. Then, maybe, if Opel drags itself back to competitive capacity, then, maybe, talk about localizing production back to Germany.

  • Gentle Ted Gentle Ted on Nov 14, 2012

    I can see why the German Union Leader wants production in the EU and not in Korea! I expect too the quality would be better around!

    • El scotto El scotto on Nov 14, 2012

      No,no,no take jobs away from the South Koreans and give them to us. Do we care about the South Koreans? Not really. Monty Burns would consider this "excellent".