General Motors resumes production at two South Korean plants

by SpeedLux
General Motors

General Motors’ South Korean unit has restarted production at its two plants in the country this week after a production halt that lasted about two weeks due to procurement issues.

The U.S. automaker’s Korea unit halted production of all vehicles at its Changwon and No. 2 Bupyeong plants since mid-July after a regional supplier, which demanded a price hike for its products, declined to supply auto parts.

South Korea’s ERAE AMS, which makes parts for automakers refused to supply parts, demanding a price increase for parts supplied to General Motors facilities in South Korea.

Changwon and Bupyeong plants have a combined yearly production capacity of about 70,000 vehicles, representing about 30% of GM Korea’s total annual production capacity in 2021.

Production at Bupyeong plant has not been affected, according to the automaker.

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