Late last year GM CEO Dan Akerson suggested that moving some GM production out of Asia to Europe would help the company's European operations, which has lost money for the past 12 years.
According to Reuters, the boss of GM Korea, Sergio Rocha, recently told the company's South Korean union of the decision to move Cruze production for Europe to the same continent. The next-generation Cruze will be built in five regions, including Europe, the US and China. It currently accounts for more than 50 per cent of vehicles produced at GM Korea's plant in Gunsan.
The news is not expected to affect local Holden Cruze production, which currently sources a number of parts from South Korea. The next-generation Cruze, due in 2015, will be based on a global GM platform that will underpin both passenger cars and SUVs.
Last month Holden confirmed production of the next-genration Holden Cruze would continue in Australia in the second half of this decade.