GM Korea to Cut Production Due to Japan Quake

March 21, 2011
Will reduce production by 10%

The South Korean unit of General Motors said on March 21 that it would reduce production this week by up to 10% because of a possible lack of parts from Japan following the devastating earthquake.

GM Korea -- formerly GM Daewoo -- said it would stop four hours a day of overtime work from March 21 at its plants in the western city of Bupyeong and in the southwestern port of Gunsan.

The company said it would also suspend eight hours a day of extra work during the weekend at Gunsan. But it will maintain its current work schedule at its plant in the southern city of Changwon.

"The move is temporary, and our company will decide whether to reduce production next week while watching the situation in Japan," a GM Korea spokesman said.

GM owns a 70.1% stake in GM Korea, the manufacturing base for smaller vehicles for the Detroit-based carmaker. Its market share in South Korea was just around 8% last year.

South Korea's top automaker Hyundai Motor and its affiliate Kia Motors said they have not been affected by the March 11 quake and tsunami in Japan.

Hyundai and Kia together form the world's fifth-largest car making group by sales. They use only about 1% of parts from Japan.

Copyright Agence France-Presse, 2011

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