Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GM Korea to cut output of key SUV as virus hits U.S. exports: document

Stock MarketsMay 03, 2020 11:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of GM Korea is seen at its Bupyeong plant in Incheon

SEOUL (Reuters) - General Motors Co's (N:GM) South Korean unit plans to sharply cut output this month at a factory producing its new Trailblazer sport-utility vehicle (SUV), as the coronavirus outbreak weighs on its U.S. exports and also disrupts parts supplies.

GM Korea is responsible for supplying some of GM's small SUVs to the U.S. market to meet a consumer shift away from sedans. Like peers industry-wide, however, it is grappling with shrinking exports as demand suffers from governments globally restricting movement to slow the spread of the virus.

GM Korea will run its BP1 plant in Incheon, near Seoul, for seven business days this month and idle it for the remaining 11, showed its internal production plan seen by Reuters.

A spokeswoman said the automaker has suspended the line until May 5 due to the virus impact on parts procurement and U.S. sales, and that its production plan for the rest of May is subject to change.

GM Korea started producing the Trailblazer in January and shipping it to the United States in February, but is yet to begin U.S. sales, she said. The model is currently sold only in South Korea.

On parts, the government's virus response in the Philippines since mid-March has disrupted supplies of wiring harnesses, company officials said.

South Korea recorded some of the earliest infections after the virus spread from China, where it was first reported at the end of last year. The export-reliant economy has since managed to control the outbreak and allowed manufacturers to resume production - only to be met with slumping overseas demand.

Total exports shrank 24.3% in April versus the same month a year earlier, trade ministry data showed on Friday - the quickest contraction since May 2009. Shipments of vehicles fell 36% and vehicle components dropped 50%.

Hyundai Motor Co (KS:005380), South Korea's biggest automaker by sales, has idled most of its five factories in Ulsan in the southeast from April 30 to May 5 - including a weekend and public holiday, when it would normally operate at times of strong demand - and extended the suspension of a line producing its Elantra sedan to Friday from May 1.

GM Korea to cut output of key SUV as virus hits U.S. exports: document
 

Related Articles

Wall Street ends sharply higher, fueled by Apple
Wall Street ends sharply higher, fueled by Apple By Reuters - May 17, 2022 15

By Noel Randewich and Amruta Khandekar (Reuters) - Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla (NASDAQ:TSLA) and other megacap growth stocks after...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Buzzy Jefferson
Buzzy Jefferson May 03, 2020 11:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bummer. Korea makes good cars.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email