Europe could benefit from rising cost of car production in Korea
Europe’s car builders could benefit from rising labour costs and union tensions in Korea. General Motors, which manufactures a fifth of its global output in Korea, said it is re-evaluating its production base there.
Rising labour costs and increased pressure from Korean unions is said to be behind the move, which has seen the next-generation Chevrolet Cruze (pictured) earmarked for European production, while the Mokka SUV, to have been built in Korea, will see its Spanish output increased instead.
Labour costs per vehicle in Korea are said to have hit as much as $1,113, as opposed to an average of $677 across GM’s other plants.