General Motors’ South Korean business unit will reportedly be impacted the most by the automaker sale of its European Opel-Vauxhall unit to French automaker PSA Groupe.
Two GM Korea plants will weather the brunt of the impact:
- GM Changwon factory, which produces the Opel Karl and Vauxhall Viva and exports the duo to Europe. It exported 57,458 units of the vehicle in 2016. The figures are believed to include exports of the Chevrolet-badged twin to the Karl/Viva – the Chevrolet Spark – to the Americas.
- GM Bupyeong factory, which produces the Opel Mokka (X) and Vauxhall Mokka (X). The plant exported 160,000 units in 2016, including fully and not fully assembled vehicles. The figures are believed to include exports of the Buick-badged twin to the Mokka twin – the Buick Encore – to North America.
2016 Opel Karl (Vauxhall Viva) is currently exported from GM Korea’s Changwon plant
2017 Vauxhall Mokka X (Opel Mokka X) is currently export from GM Korea’s Bupyeong plant
But with the sale of Opel to PSA, the exports to Europe of the Karl/Viva and Mokka will come to an end once PSA integrates the the vehicles onto its own platforms and begins manufacturing the vehicle at its own plants. It is believed that the Karl/Viva will be replaced by a “PSA proper” vehicle in 2019 followed by the Mokka in 2021.
As a result, the already-unprofitable GM Korea is likely to see an even further reduction in its production base due to a continued decrease in demand for the vehicles it produces. Previously, the unit was directly hit by the withdrawal by Chevrolet from European market’s mainstream vehicle segments. At that time, GM Korea supplied the majority of the Chevrolet Europe vehicle lineup.
French automaker PSA Group, the maker of Peugeot, Citroen and DS Automobiles, recently completed the acquisition of Opel from GM for 2 billion euro ($2.15 billion USD or 2.43 trillion Korean won). The automaker is now working on specific plans to integrate Opel and U.K. sister brand Vauxhall into its organization, including products, services, manufacturing, and retail outlets.
Comments
I had thought that with effect from 2017, all Mokka X assembly was to be concentrated at Eisenach, Germany – switching from Zaragosa, Spain and Bupyeong, Korea – in a decision which predates the GM / PSA deal.
However, in the fullness of time, I wonder if the loss of production for GM’s former UK and European brand could at least in part be offset by the manufacture of Holden Commodore and Holden Astra products which are currently sourced from Opel – Vauxhall plants and perhaps their Buick cousins too?
GM has to look for new markets such as Europe and intensify its presence in other markets as Indonesia, Australia and S/Korea.
Fully agreed.
It’s either that, or GM Korea will:
1. Turn into a national sales company, or
2. Significantly reduce its manufacturing footprint
GM Korea – proudly making some of the worst cars on the planet.
Oh rllly? Such as…
Jassy
Proudly making racist comments
Jazzy’s comment is inappropriate, but racist?
I did not read anything about Koreans or Asians in general being incapable by birth.
I admit that some cars GM Korea have produced have been a bit naff, the Holden / Chevrolet Epica and Vauxhall / Opel Antara, but the more recent Vauxhall Viva & Opel Karl are good cars and have gained a good reputation. I think there are plenty of other candidates for the “worst cars on the planet” besides what GM Korea makes
Neighours of mine have just bought a Chevrolet branded Daewoo Epica.
A used one, of course.
As long as Vauxhall ok….xx
… so who’s going to be making the Buick Encore for America?
So far it’s Korea. I don’t see this changing for the time being. GM Korea can be viable, but it will likely need to downsize its manufacturing footprint or find ways to export its vehicles to other markets.
Some potentials for the latter include Australia, Russia and Europe – if General Motors returns to the latter two markets with Chevrolet in mainstream vehicle segments.
Sounds like another GM Management failure to know the consequences of their actions down the line. The extra nail in the coffin will help bury GM Korea. Seems to fit the downsizing plan.
Who believes “that the Karl/Viva will be replaced by a “PSA proper” vehicle in 2019”?
In 2019, they will present the new Corsa, which will be based on a PSA architecture.
The Karl is only 2 years old, why should he be replaced after only four years?
But I am sure that his sucessor will be the fourth of the small cars coming out of TPCA (Toyota Peugeot Citroën Automobile Czech, s.r.o.) in Kolin, Czech Republic. I hope they manage to make it look very different from the other 3 (Peugeot 108, Citroën C1, and Toyota Aygo).
When the non-compete agreements have been concluded between PSA and GM, as I have read in the 2016 PSA report, then GM can return to the European market with mass market cars from Spark to Malibu. Built and exported as before from Korea. And newer models different from those which had been markted in Europe after the rebadging of Daewoo cars as Chevrolet.
Also, Korea can be used as the export platform for Russia. The short sea way from South Korea to Vladivostok harbour, from where they can be transported by rail.
If only the USA could finally make peace with Korea or at least simply give up any pretense of dominating this peninsula, and withdraw their troops, then the cars could be transported by land all the way.
I think Rocket Boy just might have something to say about the prospect of GM exporting cars via North Korea!
Gm actually has no presence in Europe. With Opel now out of Gm, it is the best occasion come back with its four brands.
This not correct. See
http://www.cadillaceurope.com/ for for the overall Cadillac Europe site (and look up “chose your country” in the lower right corner, or change the . com to .de for Cadillac Germany or .co.uk for the British site, also on)
Also chevroleteurope dot com with the menu for the various countries
Then there is also the old Adam Opel GmbH in RĂĽsselsheim, Germany, which is still 100% GM owned and which handles the company pensions for the old Opel employees. The actual car company which is owning the Opel and Vauxhall automobile business is the Opel Automobile GmbH (RĂĽsselsheim) and is a 100% subsidiary of Peugeot S.A., France.
Gm presence includes just Cadillac and the corvette, camaro for Chevrolet with few dealers.
GM has to go with Chevrolet, GMC, Buick and Cadillac, but with the non compete close it’s not for tomorrow.
I’m reasonably certain that GM has retained a minimal presence in the EU, with sales of select Chevrolet models (Corvette?) and possibly Cadillac models. But registrations are likely to be dozens each month as opposed to tens of thousands. I saw a freshly UK registered left hooker Corvette last week, which at a guess was being driven US forces personnel stationed here.
Korea makes the most reliable vehicles on the planet. 7 + 5 year gurantee in DK. I owned a Chevrolet Spark driving it 150.000 km at around 5000 rpm for 7 years. Not a single repair. Just brakes, tires and oil. Would stand out in rain, snow and dirt. No problem. Look as new.
People laughed at the time of Korean car makers and me … i.e. not a Chevy but Korean car.
Today Korea has replaced Japan as the most reliable cars. Hope to see GM and Chevrolet back in Europe! It has to be manufactured in Korea or I will not buy it.
BTW This also brought me to this webpage looking for whether GM Korea was still making Opel Mokka or Opel Karl.
I will not be buying a car with less than a 5 to 7 year guarantee on all parts except mainly maintenance parts like tires and brakes.
However, because the Chevrolet Spark took on 7 years without any problems – and not just mine I was told by the danish authorized repair shop,
I really value Korean manufacturing quality allthough I live next to Germany. So I will buy that without a 5 – 7 year gurantee – but only if manufactured in Korea.
I also own a 65″ korean OLED screen (LG) 🙂
I am looking for KIA or Hyundai right now … 5 – 7 guarantee … but as I said might be considering a GM if it came out of Korea.
The Chevrolet Spark was my first car. Considering my next but definitely bigger car – likely a SUV, I really appreciate not going to do repairs for many years. A really uncommon and unnecessary thing for somebody like me driving a car from GM south korea.
Thus first thing to consider when buying a new car: guarantee! How much does the car maker believe in his own product.
Thumbs up KIA and Hyundai. GM, you need to trust your korean manufacturer.
By the way. All my vacuum cleaners has been replaced by Dyson. Nothing else. Real good engine. 3 of them. 1 in the car. So US quality comes well in hand too. Bring them on. Hope to see GM back in Europe.
Yes, GM Korea still builds the Opel Karl (Vauxhall Viva) and at least half of the Opel/Vauxhall Mokka, the rest being built in Europe, in Opel’s factory near Zaragoza in northern Spain.