Kia to discontinue production of large coaches

Kia Corporation is looking to shut down its struggling large bus manufacturing operations, according to local reports citing the company’s labour union. The South Korean automaker began producing buses over 50 years ago, during its previous life as Asia Motors Industries, before Kia Motors took over the company in 1976.

Kia’s labour union told reporters that the automaker informed its workers during a labour-management committee meeting this week that it plans to cease production of large buses within the next two years, with production to be consolidated at Hyundai Motor Company. The plan is expected to face fierce opposition from the unions, however, which are demanding job protection measures.

Kia’s main large bus product is the Granbird, with sales amounting to just over 1,400 units last year – achieved mainly in the company’s home market. The Granbird is produced at the company’s Hanam plant, within the Kia Autoland manufacturing complex in Gwangju, where it also makes special vehicles including military vehicles.

According to local reports, domestic bus manufacturers have come under pressure in recent years from low-cost Chinese manufacturers, while stricter emissions regulations have also increased development and production costs.

“Kia to discontinue production of large coaches” was originally created and published by Just Auto, a GlobalData owned brand.

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