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GM to roll back output of SUVs at Korea unit citing COVID-19 impact

GM to roll back output of SUVs at Korea unit citing COVID-19 impact
GM to roll back output of SUVs at Korea unit citing COVID-19 impact

The South Korean unit of General Motors has planned a sharp cut in this month’s output at the factory that produces its Trailblazer sport-utility vehicles (SUV) on account of the COVID-19 having weighed heavy on the exports as well as disrupting the supplies.

General Motors Korea supplies the company’s small SUV to the US market to be able to meet the rising shift of the consumers from sedan. However, the company, like several other companies, has been struggling amid the deteriorated exports due to crumpling demand after the governments across the globe have restricted the movement of people to limit the virus spread.

Apparently, GM Korea will be running the BP1 plant in Incheon, which is located near Seoul, for about seven business days during this month and will be idling it for the other remaining 11 days, according to the internal production plan.

According to reliable sources, the automaker has suspended the line of production up to May 5 after facing a major impact due to the virus, especially on the sale and procurement of parts in the U.S., while its plan for production in the month of  May is still subject to change as per the conditions.

Reportedly, GM Korea had begun the production of Trailblazer in the month of January and even shipped the products to the United States in February, however, it is still to start with the US sales. The model has been currently sold only in Korea as of now.

The company officials stated that the virus response of the government of the Philippines since mid-March has mostly disrupted the supplies of parts and wiring harnesses. South Korea had recorded many infection during the early days of the pandemic.

The first case had been reported towards the end of last year. The economy, which is reliant on exports has been capable of managing the outbreak and even resumed production but has met with slumping demand.

 

Source Credit- https://timesofindia.indiatimes.com/auto/cars/gm-korea-to-cut-output-of-key-suv-as-virus-hits-us-exports-report/articleshow/75526714.cms

 

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.