GM Reduces Output in South Korea on Weak European Sales image

GM plans to further cut output this month at one of its plants in South Korea due to sluggish sales in Europe.

GM announced that it will idle its plant located in the southwestern city of Gunsan for more than a week this month, more exactly for 9 days. The facility, which is one of the five GM’s plants in South Korea, manufactures the Orlando SUV and the Chevrolet Cruze compact, with a production of 260,000 vehicles annually. The South Korean plant builds the majority of the Chevys that are sold in Europe and more than 40% of those sold worldwide.

“We are adjusting factory output in response to a fall in orders for Europe exports,” the official said, without elaborating on how much production would drop.

During the first quarter sales of Chevrolet vehicles in Europe fell 39%, compared with a 10% drop n the broader passenger vehicle market, due to the effects of the euro zone debt crisis and the austerity measures imposed by the government. GM also announced it is prepared to transfer production from South Korea if tensions and threats from North Korea get to the next level.