General Motors will not manufacture the next generation Chevrolet Cruze in South Korea as the company might shift assembly to Europe in order to boost efficiency at its money losing unit there. The next generation Chevrolet Cruze will be produced in five regions, including Europe, the United States and China. Apart from South Korea, GM builds the Cruze in many other countries like the United States, China, Brazil as well as Russia. The Cruze is brought to India via the CKD route.
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At GM Korea’s plant, the current Cruze model accounts for 50 percent to 60 percent of about 260,000 vehicles produced. The factory also builds the Chevy Orlando SUV and Lacetti small car. The next-generation Cruze, to be launched in 2014, will be the first vehicle to use an all new GM global platform that could underpin 2.5 million compact sedans and crossovers by 2018. In December, GM CEO Dan Akerson floated the idea that more cost-cutting at the company’s Germany-based Opel unit could be accompanied by shifting production to the region from Asia to make European plants more efficient.
GM’s European unit, which consists of Opel and Vauxhall brands, is losing money for 12 consecutive years and expects a loss of as much as $1.8 billion this year. The target to return to break-even levels in the region is set by mid decade. GM owns close to 77 percent of GM Korea, and wants to buy the Korean Development Bank’s 17 percent which will enable the company to have better control and authority. In India, the current generation Chevrolet Cruze sells reasonably well. We hope that the next generation mode takes the game forward and will be a formidable offering for the Indian market.
Source – AutoNews
