According to a source, hat said GM is considering a global restructuring that will see its Chevrolet brand in Europe dropped and production in Australia potentially scrapped and the company may consider shipping more South Korean-made cars to Australia.
One option that would be looked at was to supply Australia using factories in South Korea affected by GM’s announcement on Thursday that it will drop the Chevrolet brand in Europe by the end of 2015.
GM Korea shipped 187,000 Chevy cars to Europe last year but the brand has failed to gain significant share in the market.
“GM Korea could consider exporting Korean-made cars such as the Cruze compact to Australia if it were to shut down a plant there,” the source, which asked not to be identified because of the sensitivity of the matter, told Reuters.
GM Korea last year exported about 30,000 vehicles including Barina/Aveo subcompact and Captiva sport utility vehicles to Australia, where they are sold under the Holden badge.
Australia’s auto industry has been under pressure for years as high costs, a strong local dollar, weak exports and tough international competition take a toll. In May, Ford Motor Co announced it would shut its two Australian auto plants in October 2016, following the exit of Mitsubishi Motors in 2008.