General Motors announced it will not build its next-generation Chevrolet Cruze subcompact in South Korea, but did not say where production will be moved.
However, it is possible that the next-generation Cruze will be made in Europe to help increase efficiency at GM’s money-losing subsidiary. A GM Korea spokesman confirmed statements by local labor union officials that the revamped Cruze will not be built in South Korea. The official did not provide further details however.
Sergio Rocha, GM Korea CEO, recently disclosed the decision to the company’s union in South Korea, union spokesman Choi Jong-hak announced. According to Choi, Rocha said the new model will be built in five regions, including Europe, the United States and China.
Currently, GM builds the Cruze in the U.S., South Korea, China and Brazil, but also in smaller numbers in several other countries, including Russia.
GM’s decision is part of its efforts to manage its global manufacturing footprint, GM Korea spokesman Park Hae-ho said. Currently, the Cruze makes up 50 percent to 60 percent of the 260,000 vehicles produced each year at GM Korea’s Gunsan plant. The plant also makes the Chevrolet Orlando SUV and Lacetti small car.
The next-generation Cruze will launch in fall 2014 as a 2015 model and will be the first GM vehicle to use a global platform.