GM Daewoo is to close its main plant for a month from the beginning of December due to slowing sales, it was reported today. The shutdown will be the first since GM took over the company in 2002.
The plant in Bupyeong, west of Seoul, will close from 1 December to 4 January. The plant makes Tosca sedans, Windstorm SUVs and compact cars for the South Korean market. It also exports the same models to Asia and Europe under the GM brand.
A spokesperson was quoted by AFP saying the shutdown was “inevitable to reduce inventories as we face poor sales at home and abroad.”
The news follows reports earlier this month that the company was planning to halt production for up to 45 days after a sharp drop in exports.
In October, GM Daewoo saw sales fall 11% on the same month last year to 73,180 units. Domestic sales and exports were down 9.5% and 12% respectively.