GM Korea to cut output of key SUV as virus hits U.S. exports -document

SEOUL, May 4 (Reuters) - General Motors Co's GM.N South
Korean unit plans to sharply cut output this month at a factory
producing its new Trailblazer sport-utility vehicle (SUV), as
the coronavirus outbreak weighs on its U.S. exports and also
disrupts parts supplies.
GM Korea is responsible for supplying some of GM's small
SUVs to the U.S. market to meet a consumer shift away from
sedans. Like peers industry-wide, however, it is grappling with
shrinking exports as demand suffers from governments globally
restricting movement to slow the spread of the virus.
GM Korea will run its BP1 plant in Incheon, near Seoul, for
seven business days this month and idle it for the remaining 11,
showed its internal production plan seen by Reuters.
A spokeswoman said the automaker has suspended the line
until May 5 due to the virus impact on parts procurement and
U.S. sales, and that its production plan for the rest of May is
subject to change.
GM Korea started producing the Trailblazer in January and
shipping it to the United States in February, but is yet to
begin U.S. sales, she said. The model is currently sold only in
South Korea.
On parts, the government's virus response in the Philippines
since mid-March has disrupted supplies of wiring harnesses,
company officials said.
South Korea recorded some of the earliest infections after
the virus spread from China, where it was first reported at the
end of last year. The export-reliant economy has since managed
to control the outbreak and allowed manufacturers to resume
production - only to be met with slumping overseas demand.
Total exports shrank 24.3% in April versus the same month a
year earlier, trade ministry data showed on Friday - the
quickest contraction since May 2009. Shipments of vehicles fell
36% and vehicle components dropped 50%. Hyundai Motor Co 005380.KS , South Korea's biggest
automaker by sales, has idled most of its five factories in
Ulsan in the southeast from April 30 to May 5 - including a
weekend and public holiday, when it would normally operate at
times of strong demand - and extended the suspension of a line
producing its Elantra sedan to Friday from May 1. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
S.Korea's exports suffer worst slump in 11 years as pandemic
shatters world trade takers: Hyundai cars sit in U.S. ports as virus keeps
buyers away ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>