Kia plans to withdraw from the large bus market.
On June 17, Kia's labor union reported that the company informed them during a meeting of the Labor-Management Employment Stability Committee that it intends to cease production of the Granbird large bus at its Gwangju Hanam plant in one to two years.
Last year, Kia sold 1,412 units of the Granbird. Following this production halt, large bus manufacturing is expected to be consolidated under Hyundai Motor.
This decision is attributed to sluggish sales. The domestic bus market has stagnated for several years, and Chinese manufacturers are intensifying their market penetration with low-cost offerings. Additionally, increasing regulations on exhaust emissions are making it harder to maintain profitability.
Currently, there are 41,000 registered charter buses nationwide, with Hyundai and Kia holding 60% and 30% of the market share, respectively, while imported brands account for 10%.
Industry experts believe that if Kia halts bus production, the market will be restructured around Hyundai. Instead, Kia is expected to focus on purpose-built vehicles (PBVs) and software-defined vehicles (SDVs).
However, the labor union's backlash could be a significant factor. The Gwangju branch of the Korean Metal Workers' Union issued an urgent statement on the same day, stating, "We cannot accept the cessation of bus production without employment measures," and announced a complete suspension of all labor-management negotiations.
Furthermore, the union is demanding that the company present employment security plans for the Gwangju and Hanam plants, along with a long-term operational strategy.
* This article has been translated by AI.
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