GM cuts Korean output on weak Chevy sales in Europe

Read more: http://europe.autonews.com/apps/pbcs.dll/article?AID=/20130409/ANE/130409893/gm-cuts-korean-output-on-weak-chevy-sales-in-europe#ixzz2PyBh6sE6 Follow us: @Automotive_News on Twitter | AutoNews on Facebook SEOUL (Reuters) -- General Motors Co. is increasing production cuts at one of its South Korean plants because of slow Chevrolet sales in Europe. GM's South Korean unit will idle its plant in the southwestern city of Gunsan for nine days this month, up from six days in March, a company official said. The plant builds the Chevrolet Cruze compact car and Orlando minivan and has an annual production capacity of 260,000 vehicles. It is one of five GM factories in South Korea. GM's Korean unit produces most of the Chevrolets sold in Europe and more than 40 percent of those sold globally. "We are adjusting factory output in response to a fall in orders for Europe exports," the official said on Monday, without elaborating on how much production would drop. Sales of Chevrolet vehicles slumped 39 percent to 18,790 units from January to February in the EU, according to industry association ACEA, underperforming a 10 percent fall in the broader passenger vehicle market amid the euro zone debt crisis and government austerity measures. Cruze sales in Europe fell to 5,704 from 5,035 during the first two months the year before, according to JATO Dynamics. Orlando sales for January and February were 2,101, down from 3,955.