General Motors is reportedly shifting its South Korean production of the Chevrolet Aveo — the global twin of the Sonic — to China, after informing its Korean union on Thursday. As a result, the union is threatening to strike.
The shift in manufacturing cites rising wages as the major cause. At the same time, South Korea currently produces 40 percent of all Chevrolet models sold globally, including the Cruze, Orlando, Trax and Spark. Korea also produces the Buick Encore, and Opel Mokka.
General Motors even announced last year that it won’t build the next-generation of the Cruze compact in South Korea beginning in 2015.
At the same time, the company plans to invest $917 million each year in its Korean operations, starting this year to develop new vehicles and powertrains.