GM to Add European Output of Korean SUV

General Motors Co. confirms it will begin making the Opel Mokka small SUV at its underutilized plant in Zaragoza, Spain, in the second half of 2014.

The Mokka is now produced exclusively at GM's factory in Pupyong, South Korea.

The Korean facility will continue to supply Mokkas to Europe. The plant will expand its SUV capacity by an unspecified amount and also begin supplying Zaragoza with Mokka kits for final assembly, according to GM.

Korean unions were alarmed by speculation earlier this year that the company might take work away from its members. Labor leaders threatened "enormous resistance" if that were to happen.

GM says increased global output of Mokka will help it meet strong European demand for the model. Adding production in the region also helps Opel boost its capacity utilization and meet demands to preserve the 5,800 jobs at the Zaragoza factory. That facility currently builds the Opel Corsa supermini and Meriva minivan.