Kia is withdrawing from the large bus business that has continued since the Asia Motors era, about 60 years ago.
According to the industry on the 18th, Kia told the union at the second working-level meeting of the labor-management Employment Stability Committee held the day before that it plans to stop production of the large bus "Granbird" in 1–2 years.
Launched in 1994, the Granbird is currently the only bus model Kia produces. As a result, production of large buses within Hyundai Motor Group is expected to be consolidated under Hyundai Motor.
Kia has produced buses since 1965 during the Asia Motors era, but it ultimately decided to wind down the bus business due to sluggish sales. As emissions regulations tighten and Chinese companies continue their low-price offensive, it has become difficult to secure profitability. In fact, the Granbird's annual domestic sales have remained at around 1,000 units for years.
However, union resistance to the line closure could be a variable. The Gwangju chapter of the Kia branch of the Korean Metal Workers' Union said the day before, "We cannot accept a halt to bus production without employment measures," adding, "We will suspend all labor-management consultations in full."
The union demanded that management present employment guarantees for the Gwangju and Hanam plants and a mid- to long-term operation plan.