Thursday, August 28, 2014

España: GM Plant in Figueruelas Shifts from 100% South Korean Parts to 40% Parts Supplied by Spain

According to EFE, General Motors’ plant in the eastern Spanish town of Figueruelas on Thursday (August 28) will began making the Opel Mokka sub-compact SUV, a model that had previously been manufactured exclusively in South Korea.

The goal is to more efficiently supply the customers of GM’s European division, Opel, and move gradually from a system in which 100% of the vehicle’s components come from South Korea to one in which 40% of the parts are provided by Spanish suppliers.

The start of Mokka production in Spain fulfills agreements reached between the company and its workers, the head of GM Spain’s works council, Ramón Legarre, said that 20,000 units will be manufactured in the remaining months of 2014 and that output will rise next year.

COMMENT: The production of the Mokka model in the Spanish province of Zaragoza will ensure a “certain degree of normality” returns to the plant, where nearly 6,000 people are employed, Legarre said.

No new jobs are to be created initially, although the production shift should eliminate the need for layoffs or furloughs.

GM Spain has invested more than $4.3 billion over 30 years in the Figueruelas plant, including 165 million euros (some $217 million) last year.