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GM
Korea pledges $300 mil. investment to ease exit rumors
Carmaker
to debut Buick here in 2026
By Lee
Min-hyung, The Korea Times - General Motors (GM) Korea has pledged to inject
$300 million to upgrade its products and facilities here, while unveiling plans
to launch its Buick brand and roll out three new GMC models in 2026 — a move
aimed at quelling unceasing rumors of its possible exit from the local market.
It is
unusual for the U.S. automaker to announce both a large-scale investment and an
expanded product portfolio, which the company says are intended to enhance its
mid- to long-term competitiveness here.
“GM
Korea now serves as a key production hub in GM’s global growth strategy
responding to strong global demand for vehicles built in Korea,” GM Korea CEO
Hector Villarreal said during the opening ceremony of its newly built Virtual
Engineering Lab in Incheon, where a 2026 business strategy conference was also
held.
“We
will continue to invest in our manufacturing footprint to strengthen
competitiveness over the mid to long term.”
The
latest initiative comes at a critical time, with the carmaker mired in
persistent rumors of potential withdrawal from the local market, triggered by
the aftermath of U.S. auto tariffs. The speculation has shown little sign of
subsiding after the automaker decided to shut down all of its directly
controlled service centers nationwide in May.
However,
GM Korea has denied the rumors, saying that the decision was made as part of
its efforts to ensure sustainable operations and secure financial soundness
here.
“Over
the past two decades, GM Korea has produced 13.3 million vehicles here and sold
2.5 million in the domestic market, establishing the carmaker as a key part of
the nation’s automotive industry,” Villarreal said.
He
also pledged to expand GM’s product portfolio in diverse powertrains.
“We
will strengthen our full-cycle capabilities in Korea from vehicle design and
engineering to manufacturing and sales, while expanding our product portfolio
of next-generation internal combustion engine vehicles and electric vehicles,
introducing advanced driving technologies for Korean customers,” he said.
The
drive is aimed at increasing its domestic sales — which have long been cited as
the carmaker’s biggest pain point — as its export reliance reaches more than 80
percent. According to data from GM Korea, its accumulated vehicle sales here
came in at 13,952 between January and November, down 39.4 percent from the
previous year.
The
carmaker’s lack of highly commercial, price-competitive flagship models is
considered one of the biggest reasons behind its domestic slump.
