Monday, June 10, 2013

GM May Move Mokka Production From Korea To Europe

GM has rocky relations with its Korean unions, and the relations will get a lot rockier if what Germany's Handelsblatt says is true. According to the report, GM is seriously looking into moving most of the production of the Opel Mokka to Europe.

Currently, the hot selling SUVlet is made in South Korea only.  Says Reuters:

"More than 100,000 Mokkas have been ordered since the market launch a half year ago and demand has been much better than expected, leading to production bottlenecks and long waiting lists for the subcompact SUV.

Producing the Mokka in the factory of General Motors' Opel unit in Zaragoza would help to fill up that plant's spare capacity and could lower losses of the division."

An Opel spokesman told Reuters that "GM was looking for additional capacity to produce subcompact SUVs."  The Trax, a Chevrolet-badged Mokka sibling, will continue to be built in Korea, a Chevrolet spokesman said. A shift of the Mokka production has been discussed for a while. The next generation Mokka already is scheduled to be produced in Europe.

Three days ago, the Korean unions threatened strike after hearing that the new Aveo/Sonic will be made in China and the United States.  This latest piece of news could cause the already simmering kettle to boil over.



from The Truth About Cars http://www.thetruthaboutcars.com




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