GM could move Opel Mokka production from Korea to Spain

In what could be another blow for General Motors' South Korean operations, the Detroit automaker will reportedly shift production of its Opel Mokka subcompact SUV from the Korean peninsula to Spain.

According to the German paper Handelsblatt, by way of Reuters, GM is weighing a decision to move production of its Opel Mokka from Korea to Spain in an effort to revive its European operations and ease capacity constraints. The news comes just days after GM told union leaders in Korea that it would not build the next-generation of its Aveo small car in the country.

 

GM is reportedly panning to move production of the Mokka to its underutilized plant in Zaragoza. The production shift would help GM cut its European losses, which are expected to be in the billions this year.

In addition to helping GM's bottom line, the move would also help increase production of the Mokka. GM has received more than 100,000 orders for the Mokka, but the automaker's South Korean plant simply can't keep up with demand.

A spokesman for Chevrolet told Reuters that the Trax, a sister model the Mokka, will continue to be produced in Korea.

Opel previously announced that it was looking at production sites outside of Korea for the next-generation of the Mokka.