General Motors Co. has scrapped plans to build the Chevrolet Impala in South Korea due to high costs and market shifts, dealing a blow to local workers who asked for production of the U.S. auto maker’s large sedan.

South Korea is one of GM’s major Asian production hubs, accounting for nearly one-fifth of its global output. Its plants in the country have largely built low-cost vehicles, but lately GM has been rethinking that strategy due to rising Korean labor costs.

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