GM Korea To Boost Local Production Of Cars To 500,000 On Overseas Demand

SEOUL, Feb 3 (Bernama-Yonhap) -- GM Korea Co., the South Korean unit of General Motors Co., said Tuesday it aims to produce 500,000 vehicles this year to meet growing overseas demand, particularly from the United States, Yonhap News Agency reported.

The target represents an 8.5 per cent increase from its output of 460,826 units last year amid renewed speculation that the automaker could scale back or exit operations in South 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 South 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 US$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 per cent tariff on South 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 South Korea to 25 per cent from 15 per cent, citing delays in the country's legislative process related to the trade deal's implementation.

-- BERNAMA-YONHAP

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