Kia plans to withdraw from the large bus market.
On June 17, Kia informed its labor union during a meeting of the 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.
This decision is attributed to sluggish sales, as the domestic bus market has stagnated for several years, compounded by increased competition from Chinese manufacturers offering lower prices. Additionally, stricter emissions regulations have made it increasingly difficult to maintain profitability.
Currently, there are 41,000 registered charter buses in the country, with Hyundai holding a 60% market share and Kia 30%, while imported brands account for 10%.
Industry analysts predict that Kia's exit from bus production will lead to a market reorganization centered around Hyundai. Instead, Kia is expected to focus on purpose-built vehicles (PBVs) and software-defined vehicles (SDVs).
However, the union's backlash could pose a challenge. The Gwangju branch of the National Metalworkers' Union issued an urgent statement, declaring, "We cannot accept the cessation of bus production without employment measures," and announced a complete halt to all labor negotiations.
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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