GM drops out on its initial plan to build the Impala sedan in South Korea image

General Motors changed its mind on building the Impala sedan in South Korea, raising discontent within the local union.

General Motors initially indented to build the Impala model at its South Korean production line, as a way of rising the low production volumes in the country. For years, South Korea has been a crucial export hub for the automaker, but ditching the Chevrolet brand in Europe has had a major impact on the output, as most Chevys were sent from South Korea to the old continent. Bringing in the Impala sedan should have balanced production levels to some extent, but GM scraped the move, saying it will however continue to import the Impala from a Detroit plant. As expected, this decision does not please at all the trade union that represents most workers at the company’s South Korea operations, which plans to fiercely contest it.

The union leader will meet later this month with GM’s Chief Executive Mary Barra to discuss the subject that he said “threatens the existence of GM Korea”. “We will have a prolonged and persistent fight,” told another union official to Reuters, adding that the union would not rule out calling workers out on strike.

Dale Sullivan, vice president of GM Korea, said last month that the aim was to boost the automaker’s sales in the country by introducing seven models including the Captiva sport utility vehicle and the Malibu sedan. He also targets to sell 191,000 more cars locally this year and to increase GM’s market share.

Via Reuters