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GM
Korea to boost local production of cars to 500,000 on overseas demand
The Korea
Times - GM Korea, the Korean unit of General Motors, said Tuesday it aims to
produce 500,000 vehicles this year to meet growing overseas demand,
particularly from the United States.
The
target represents an 8.5 percent increase from its output of 460,826 units last
year amid renewed speculation that the automaker could scale back or exit
operations in Korea due to higher U.S. import tariffs.
GM
Korea's vehicle sales had plunged to 223,623 units in 2021 from 409,830 in
2019, due largely to the impact of the COVID-19 pandemic. Sales rebounded to
464,648 units in 2023 and 499,000 in 2024.
The
company said it plans to focus on producing the Chevrolet Trax crossover and
the Chevrolet Trailblazer compact sport utility vehicle (SUV) by fully
operating its Bupyeong and Changwon plants.
"Parent
company GM has recently requested GM Korea to operate the two plants at full
capacity to produce 500,000 units," a company spokesperson said.
GM
Chief Executive Officer (CEO) Mary Barra earlier said demand for models
produced in Korea remained strong and that the vehicles were contributing to
the company's profitability.
At the
"GM Korea 2026 Business Strategy Conference" held in December, GM
Korea announced plans to invest $300 million in its local operations and
strengthen its production base beyond 2028, dismissing concerns that the
Detroit automaker may reduce its footprint in the country.
Last
week, GM Korea launched the Acadia SUV and the Canyon pickup under its SUV- and
pickup-focused GMC brand and said it plans to introduce the all-electric Hummer
SUV in the first half of this year to boost sales.
The
U.S. currently imposes a 15 percent tariff on Korean-made vehicles under a
bilateral trade agreement.
However,
last month U.S. President Donald Trump threatened to raise
"reciprocal" tariffs and auto duties on Korea to 25 percent from 15
percent, citing delays in the country's legislative process related to the
trade deal's implementation.
