GM Korea, the South Korean branch of General Motors, announced that it plans to manufacture 500,000 vehicles this year to satisfy increasing international demand, especially from the US.
The goal signifies an 8.5 percent rise from last year's production of 460,826 units amid fresh speculation that the automaker may reduce or cease operations in Korea because of elevated US import tariffs.
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In 2021, GM Korea's vehicle sales fell to 223,623 units, down from 409,830 in 2019, mainly due to the effects of the COVID-19 pandemic. Sales increased to 464,648 units in 2023 and 499,000 in 2024.
The company announced its intention to concentrate on manufacturing the Chevrolet Trax crossover and the Chevrolet Trailblazer compact SUV by fully utilizing its Bupyeong and Changwon facilities.
According to reports, the company stated that the parent company GM has asked GM Korea to run the two facilities at full capacity to manufacture 500,000 units.
GM's Chief Executive Officer (CEO) Mary Barra previously stated that the demand for models manufactured in Korea continues to be robust and that these vehicles are enhancing the company's profitability.
During the "GM Korea 2026 Business Strategy Conference" in December, GM Korea revealed intentions to invest $300 million in its domestic operations and enhance its production capacity beyond 2028, addressing worries that the Detroit automaker could downsize its presence in the nation.
Last week, GM Korea debuted the Acadia SUV and the Canyon pickup through its GMC brand, which emphasizes SUVs and pickups, and announced plans to unveil the all-electric Hummer SUV in the first half of this year to increase sales.
The US currently levies a 15 percent tariff on vehicles manufactured in Korea due to a bilateral trade agreement.
Last month, US President Donald Trump threatened to increase "reciprocal" tariffs and auto duties on Korea from 15 percent to 25 percent, pointing to delays in the nation's legislative process concerning the trade deal's implementation.
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Recently, General Motors (GM) Korea has begun expediting its sales strategy focused on imports, a move that some critics believe contradicts Renault Korea's emphasis on localization. General Motors Truck Company (GMC), a subsidiary of GM, introduced three high-end models last week: the Arcadia SUV, the Canyon pickup truck, and the Hummer EV all-electric SUV. The launch of three new models in Korea is a strategic move by GM as part of its multi-brand approach to establish a strong foundation for long-term growth in the country.
Additionally, the American automaker has disclosed its intention to bring its premium brand Buick to the Korean market by the end of the current year. This will increase GM's presence in the domestic market to encompass four distinct brands - Chevrolet, Cadillac, GMC, and Buick - a significant milestone for the car manufacturer, as Korea will emerge as the inaugural market beyond North America to offer all four brands.
The introduction of a variety of models by GMC garnered attention, although there is room for improvement as the manufacturer currently depends on importing new vehicles instead of increasing domestic production. This comes at a time when GMC continues to face speculation about the possibility of withdrawing from the Korean market.
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Renault Korea, positioned as one of the three mid-range automotive manufacturers in the region alongside GM Korea and KGM, maintains its commitment to producing strategic vehicles through localized methods. The company recently introduced its premium Filante SUV, which is also referred to as the Aurora 2 project.