GM Will Not Build The Chevy Cruze In South Korea
|   Saturday, November 10, 2012
The next generation of General Motors' Chevrolet Cruze compact car could be made in a plant in Europe, according to an announcement made by a company representative in Korea during talks with unions. According to Sergio Rocha, the head of Korea General Motors, the global model of GM would be build in five places across the world, including Europe, China and USA.

For those who are still in the dark regarding Chevrolet, know that it was founded in 1911 by Louis Chevrolet and Willian C.
Durant. Its mission was to build mainstream automobiles and compete against Ford's Model T. Kicked out from General Motors in 1910, by 1916 Durant had built Chevrolet into such a profitable car maker that he bought a controlling share in GM and made president the next year. One of Chevrolet's breakthroughs is the small block V8, which, by the way, has remained in continuous production since 1955.

Right now, the compact Chevrolet is built in South Korea, China and Brazil, however, it continues to produce very small volumes in Russia, India, Kazakhstan, Vietnam and Thailand. The Chevrolet Cruze is the best selling model in the brand, with a total of 670,000 units sold last year, and close to 1.5 million units sold worldwide since its launch back in 2009.

Arriving via Automotive News this bit of info stands next to GM having a problem with large losses in Europe. Relocating production to there could change the financial situation and the efficiency of factories. On the other hand, Korean unions are justly unhappy that this model won't be produced in the plants located in this country because it covers over 50 percent of the plants. The final decision will not , however, be taken without the approval of the second shareholder of General Motors Korea, Korea Development Bank. Owning just17 percent of the shares, it nevertheless has veto power on the Board of Directors.

At General Motors Korea's plant located in the southwestern city of Gunsan, the ongoing Cruze model makes for 50 percent to 60 percent of the 260,000 vehicles produced there. The factory likewise builds the Orlando SUV as well as the Lacetti small car.

The second generation Cruze will most likely be presented in 2014 and it would expand the use of a common platform on about 2.5 million GM cars. The current platform can be found on the Chevrolet Cruze, Opel Astra, Chevrolet Orlando MPV as well as the Vauxhall Zafira Tourer, and the 2 electric vehicles/hybrids Chevrolet Volt and Opel Ampera.

For 12 years in a row, the GM's Euro unit, which includes Opel and Vauxhall as the brands, has been losing money and right now the company is struggling to reduce costs and boost efficiency in that area.

General Motors expects a loss of 1.8 billion dollars this year with the recovery process being scheduled for the middle of this decade.
Last month, the company said that it wanted to buy a stake in its Korean operations from the number 2 shareholder, Korea Development Bank.
PHOTO GALLERY
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