GM to invest 880 billion won in South Korean operations to solidify global production base'

*This content was translated by AI.

General Motors (GM) will invest a total of $600 million (about KRW 880 billion) to strengthen the competitiveness of its Korean operations as a global small SUV production base. The investment is based on the performance of normalizing management, including achieving a surplus for three consecutive years since 2022. GM's South Korean operations posted a profit of 1.5 trillion won in 2023 and 2.2 trillion won in 2024, following a surplus of 210 billion won in net profit in 2022.

The investment is largely carried out in two stages. In addition to the $300 million investment announced in December last year to strengthen factory performance and marketability of small SUV models produced in Korea, $300 million has been added to modernize production facilities. The additional $300 million (about 440 billion won) will be focused on improving facilities, improving safety infrastructure, and improving operational efficiency, including the introduction of new press machines. GM held an investment plan commemorative event with its labor union at the Bupyeong plant press factory on March 25 and strengthened its commitment to strengthening manufacturing competitiveness.

The purpose of this investment is to establish its Korean operations as a "Center of Excellence," a key production base for global small SUVs. Currently, Chevrolet Trax crossover developed and produced in Korea has been the top export destination for Korean cars for three consecutive years, and Trailblazers are also in the top five exports. Buick Encore GX and Envista are also major export models. GM's Korean operations have produced 13.3 million vehicles cumulatively since its launch in 2002, and currently have an annual production capacity of 500,000 vehicles.

Korea is also a major vehicle development base where GM Technical Center Korea, the second largest global engineering center within GM, is located. The number of direct employees is about 12,000 and is contributing to the local economy, mainly in Bupyeong, Changwon, and Boryeong. In addition, it has cooperative relationships with more than 1,600 primary partners, and is in the process of procuring parts worth about $3.7 billion (about 4.8 trillion won) annually through domestic partners. The Korea Development Bank, the second-largest shareholder, said the investment will contribute to maintaining global market competitiveness and securing mid- to long-term sustainability.

Hector Vijarreal, president of GM's Korean operations, explained that the investment was the result of efforts to secure the success and profitability of Korean development and production vehicles. He stressed that the decision was a symbolic step to show confidence in the operation of Korea in the face of intensifying global competition. In addition, it said that the introduction of state-of-the-art press facilities will contribute to improving the safety and quality of manufacturing sites and providing top-notch products to customers around the world.

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*This content was translated by AI.