GM Swapping Korean Cruze Production For Europe: Report

General Motors will not produce the next-generation 2015 Cruze small car in South Korea, according to a new report.

Reuters reports that GM has confirmed plans with South Korean union officials, hinting at boosted European production of the world car.

The Cruze accounts for more than 50 percent of the 260,000 vehicles built annually at GM’s Gunsa plant in South Korea, along with the international Orlando SUV model.

GM Korea boss Sergio Rocha reportedly stated that production of the new model will be centred on five regions, including Europe, the US, and China - without specifically naming the remaining two regions. 

Currently, versions of the Cruze are produced in South Korea, the US, China, Brazil, and in lesser volumes Russia and Australia - among several other nations.

This decision is not expected to affect local Holden Cruze models, which have been produced at Holden’s Elizabeth plant in South Australia since March 2011.

Holden confirmed plans last week to shed 170 jobs at the Elizabeth plant, in a move designed to align Cruze and Commodore production with local demand. 

If the report is accurate, increase Cruze production in Europe is likely aimed to boost efficiency at Opel/Vauxhall plants that are currently producing well under capacity, due to the weak European market.

GM will be working to produce commercially efficient volumes in these plants, given GM’s European division has failed to return a profit for twelve consecutive years.

The next generation Cruze is expected to use an all-new global GM platform, with production set to commence in late 2014 to appear on world markets as a 2015 model.

• Cruze | Holden | Small Cars | Family Cars