April 26, 2024

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[THE INVESTOR] GM Korea, the local unit of US automaker General Motors, has scaled back its engine production at the Bupyeong plant on the back of dwindling exports. 

GM Korea has told its labor union it plans to cut engine production level by 24 percent, or 137,000 units, this year starting June, according to industry sources on March 16. 

“The demand of foreign automakers that have imported engines (from GM Korea) has temporarily dropped,” a GM Korea official was quoted as saying in the local media. “But we have plans to manufacture new products (at this plant), so the operation rate is expected to recover.”

Besides the Bupyeong plant, GM Korea produces engines at its Gunsan and Changwon plants. 

General Motor’s latest decision to sell its European operation Opel and Vauxhall brands to France’s PSA Group is also alarming the Korean unit. 

Industry watchers predict GM Korea may suffer a further decline in exports, considering one-third of its total shipments were to Europe last year, sold through the Opel and Vauxhall brands.

By Ahn Sung-mi (sahn@heraldcorp.com)