GM Affirms Plan for Korean-Made Small SUV

General Motors Co. denies a report that the small SUV/crossover vehicle being developed by the technical center it spun off in South Korea in January will be produced in China.

The company says its Korean facilities will build versions of the vehicle for both markets. GM Korea’s labor union has been wary of the company’s long-term plans since the unit agreed with the state-run Korea Development Bank on a plan to avoid bankruptcy.

Part of the deal involved spinning off GM Korea’s product development activities as the independent GM Technical Center Korea Co. in December. Union leaders declared the move would be the first step in ending local production operations.