Kia is poised to exit its large bus manufacturing business, marking the end of over five decades of commercial vehicle production that began with its predecessor, Asia Motors. This strategic shift will see the company discontinue production of its Granbird large bus, consolidating all large bus operations within the Hyundai Motor Group under Hyundai Motor.
According to Kia’s labor union, the company officially informed workers at a recent labor-management employment stability committee meeting of its plans to cease Granbird large bus production within the next one to two years. Should this initiative proceed, the entire large bus production for the Hyundai Motor Group will be streamlined and managed exclusively by Hyundai Motor, a key restructuring move within the conglomerate.
This significant decision comes as Korea’s bus market grapples with persistent challenges, including sluggish demand and declining profitability. Domestic bus sales have remained subdued over recent years, while the market share of low-cost Chinese manufacturers has steadily increased, intensifying competition. Furthermore, stricter emissions regulations have driven up both development and production costs, placing additional pressure on manufacturers’ profit margins in the large bus segment.
However, this proposed discontinuation of Kia’s large bus production is anticipated to face strong opposition from its labor unions. The Gwangju branch of Kia’s labor union, which is affiliated with the powerful Korean Metal Workers’ Union, has firmly stated its refusal to accept the end of bus manufacturing without concrete and comprehensive measures to safeguard jobs and ensure employment stability for its members.
The union has announced a suspension of all labor-management consultations regarding the matter, urging Kia to present explicit employment guarantees. They also demand a detailed, long-term operating plan for its manufacturing plants located in Gwangju and Hanam, Gyeonggi Province, to secure the future of these facilities and their workforce.
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