GM Korea Proposes Dropping Another Production Shift

General Motors Co.’s Korean unit wants to suspend one of two production shifts at one of its two assembly plants in Bupyung because demand for its vehicles has plummeted by half.

Reuters cites an internal union newsletter that declares workers must fight the decision in an effort to prevent the plant from closing entirely. GM said weeks ago it will shut down its factory in Gunsan by May because of slumping demand.

The targeted Bupyung plant makes Captiva small crossover vehicles and Malibu sedans. The facility, which has been operating two shifts for two days per week, is operating at half its capacity, according to the news service. The Captiva will end its model run by December.

GM’s second assembly plant in Bupyung, which produces the Trax small crossover, is running at full capacity. The carmaker says its sales, which fell 48% year on year in February, plunged 58% to fewer than 6,300 units in March.

One union official blames the company, grousing to Reuters that GM Korea has been in “free fall” since the Gunsan plant closure announcement. GM has pledged to add new products, modernize operations and stabilize production in Korea. But it says the plan depends upon the union agreeing to cost reductions and the Korean government providing bailout funds.