Due to poor Chevrolet sales in Europe, General Motors Co. is widening the production cuts at one of its several factories in South Korea. According to a company official, the operations of this plant located in the southwestern city of Gunsan will be suspended for nine days, higher than the six days that it was idled in March.
The factory assembles the Chevrolet Cruze compact car and Orlando minivan and has a yearly production capacity of 260,000 units. GM has five plants in South Korea. The Korean unit of GM builds majority of the Chevrolet models sold in Europe and over 40% of those sold worldwide. Last Monday, the official said that the company is amending factory output in response to a drop in orders for Europe exports.
The official didn’t explain how much the output is expected to decrease. Chevrolet sales fell by 39% to 18,790 units from January to February in the EU, ACEA said. Meanwhile, the wider passenger vehicle market decreased by 10% amid the euro zone debt crisis and government austerity measures.
JATO Dynamics said that Cruze sales in Europe declined to 5,704 in the first two months from 5,035 units in the same period of last year. For the first two months of 2013, Chevrolet sold 2,101 Orlando units, a drop from 3,955 units.