Korea Union Protest GM Plan to Move Work Overseas

Labor leaders in South Korea have warned General Motors Co. that it will face "enormous resistance" from its workers if the company does not rescind a decision to shift production of the next-generation of Chevrolet Cruze to another region, Reuters reports.

Union officials tell the news service that GM Korea CEO Sergio Rocha informed them late last week that the company would not retract the plan.

The union now seeks the support of government officials and the state-owned Korea Development Bank, says Reuters. The bank owns a 17% stake in GM Korea, which gives it veto power over some corporate decisions. The company offered last month to buy back those shares.

Analysts speculate that GM plans to build the new Cruze due in 2014, at one of its Opel unit's underutilized factories in Europe. The company previously suggested it would consider such a move as part of its sweeping restructuring of Opel.

Korean workers fear losing Cruze production could result in the closing of GM's assembly plant in Gunsan, which builds the compact car, Lacetti small car and Orlando MPV. The factory employs about 3,300 workers. The Cruze accounts for as much as 60% of the facility's annual output of 260,000 vehicles, according to Reuters. It cites union officials who say Rocha downplayed the likelihood of closing or reducing production at the plant.