GM to invest US$300m in South Korean operations

Core Viewpoint - General Motors is reaffirming its commitment to South Korea by investing US$ 300 million to upgrade its manufacturing operations at GM Korea, despite previous concerns over tariffs impacting production [1][2]. Investment and Production Plans - The US$ 300 million investment will focus on producing the next-generation Chevrolet Trax and Trailblazer, although no specific timeline for the investment has been provided [4]. - GM Korea's existing five-year investment roadmap includes the recent opening of the Cheongna Proving Ground Virtual Engineering Lab, enhancing its role as a global engineering hub [4]. Market Context and Sales Performance - The US government recently reduced tariffs on South Korean imports from 25% to 15%, aligning them with other major exporters, which positively influenced GM's decision to invest in South Korea [3]. - GM Korea's domestic sales fell by 39% to 13,952 units in the first eleven months of 2025, while exports decreased by 6.5% to 395,858 units, amid increasing competition [3]. Strategic Initiatives - GM Korea plans to introduce GMC and Buick brands in South Korea in 2026, alongside Chevrolet and Cadillac, to strengthen its domestic sales [5]. - The company aims to expand its sales and service networks in South Korea and offer a broader vehicle portfolio featuring advanced technologies like Super Cruise [5]. Long-term Vision - GM Korea's CEO highlighted that achieving profitability in 2024 is a significant milestone, and the company is focused on building a sustainable foundation through its normalization plan established in 2018 [5]. - Over the past 20 years, GM has produced 13.3 million vehicles in Korea and sold 2.5 million domestically, establishing GM Korea as a key player in the South Korean automotive industry [5].