GM will not build next generation Cruze in Korea

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GM will not build next-generation Chevy Cruze in South Korea
Reuters
November 6, 2012
by Hyunjoo Jin

General Motors said it would not build its next-generation Chevrolet Cruze small car in South Korea, raising the possibility that it might shift the assembly to Europe to help boost efficiency at its money-losing unit there.

GM Korea head Sergio Rocha recently disclosed the decision to the company's South Korean union, said union spokesman Choi Jong-hak. Rocha said the new model would be built in five regions, including Europe, the United States and China, according to Choi.

Besides South Korea, GM builds the Cruze in the United States, China and Brazil, as well as in smaller numbers in several other countries, including Russia, for local markets.

The decision is part of the No. 1 U.S. automaker's efforts to manage its global manufacturing footprint, GM Korea spokesman Park Hae-ho said.

The current Cruze model accounts for 50 percent to 60 percent of about 260,000 vehicles produced at GM Korea's plant in the southwestern city of Gunsan, Park said. The factory also builds the Chevy Orlando SUV and Lacetti small car.

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