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GM Korea to invest $600 mil. to boost small SUV
manufacturing
By Lee
Min-hyung, The Korea Times - General Motors (GM) Korea will invest a total of
$600 million (880 billion won) to upgrade products and equipment, in a move to
further transform its Korean operations into a major global hub for small SUV
production, the company said Wednesday.
Following a
$300 million investment plan announced in December last year, the additional
$300 million commitment is expected to ease concerns over a potential GM Korea
withdrawal that had surfaced in the past.
CEO Hector
Villarreal said the decision reflects the success of vehicles developed and
produced in Korea for global markets.
“Since 2018,
with the support of our stakeholders, we have taken key actions to strengthen
our manufacturing operations to support profitability,” he said.
GM Korea has
been serving as a major production hub for the Chevrolet Trax and Trailblazer —
two major profit boosters for the carmaker’s exports to the United States.
“Competition
continues to grow across the global industry, with many new OEMs (original
equipment manufacturers) entering export markets around the world,” Villarreal
said.
“This
investment is a sign of confidence in our operations.”
The investment
will be used to upgrade production equipment, improve safety infrastructure and
working environments and enhance operational efficiency, the carmaker said.
As part of the
latest initiative, the company will allocate $300 million to modernize key
facilities, including the introduction of new press machines at its
manufacturing plant in Bupyeong District, Incheon.
“This
investment will enable us to introduce new, state-of-the-art press facilities
that will help us deliver world-class small SUVs to customers around the world,
while further improving safety, quality and efficiency on the shop floor,”
Villarreal said.
Backed by
continued investment, GM Korea has strengthened its profitability in recent
years. The company returned to the black in 2022 with a net profit of about 210
billion won, following its business normalization efforts launched in 2018.
The company
posted a net profit of 1.5 trillion won in 2023, which rose further to 2.2
trillion won in 2024, marking three consecutive years of profitability, driven
by strong exports of its key models.
GM Korea has
produced some 13.3 million vehicles since its launch in 2002 here, establishing
itself as a core global production hub for GM, with an annual production
capacity of 500,000 focused largely on small SUVs.
The carmaker
directly employs around 12,000 people and contributes to regional economies
centered around key production hubs in Bupyeong, and Changwon in South
Gyeongsang Province.
Last year, GM
Korea sold a total of 15,094 vehicles in the domestic market and exported more
than 447,000 cars across the globe.
"As the
second-largest shareholder, Korea Development Bank (KDB) has been working
closely with GM Korea since 2018 to support its business turnaround," KDB
Chairman Park Sang-jin said. “With this $600 million investment, we will
continue to collaborate with GM to ensure GM Korea remains competitive in the
global market and secures long-term sustainability.”
