GM Korea to idle South Korean plant due to weak European sales

Union provoked by contingency plan

GM Korea plans to idle its Gunsan plant for nine days this month on account of weak sales in Europe, reports Reuters. The plant produces the Chevrolet Cruze compact car and Orlando sport utility vehicle (SUV), and most of the production is exported to Europe. An unnamed official stated, "We are adjusting factory output in response to a fall in orders for Europe exports," without disclosing by how much production would drop. Meanwhile, the union has taken exception to the automaker's contingency plans announced last week in the wake of rising tension with North Korea. GM CEO Dan Akerson said last week that GM could move production out of South Korea because of the crisis.