'Full Operation' Korea GM, December Exports Expected to Hit Annual Record... Profit Turnaround Anticipated Next Year

Production Normalizes as Labor Agreement Reached
Exports Expected to Surpass 35,000 Units This Month

Trailblazer Export Accelerates
Profit Turnaround Target for Next Year Also Reset

Chevrolet Trailblazer (Photo by Korea GM)

[Asia Economy Reporter Kim Ji-hee] Korea GM, having resolved one of its biggest risks?labor-management conflicts?is regaining momentum in exports. Although production sharply declined last month due to consecutive strikes, maintaining a full-capacity operation this month is expected to help December exports reach the highest level so far this year.

According to Korea GM on the 29th, total export performance for December is expected to exceed 35,000 units. This is the second time this year that monthly exports have surpassed 30,000 units, following September. Compared to the previous month, when production was disrupted by strikes before the resolution of this year’s wage and collective bargaining agreement (Wage and Labor Agreement, WLA) negotiations (14,826 units), exports have surged 2.5 times.

The Trailblazer, which Korea GM has been producing since the end of last year, appears to be driving exports due to its popularity in the North American market. The Trailblazer received positive responses, ranking as the "fastest-selling vehicle in the United States" selected by the North American automotive evaluation agency iSeeCars in July. From January to November this year, total exports reached 123,320 units. With over 20,000 units expected to be shipped this month, the Trailblazer is projected to record nearly 150,000 exports as a single model for the year.

Korea GM handles the entire North American supply of the Trailblazer, but local supply still does not fully meet demand. Labor-management conflicts continued until November, further delaying production. Fortunately, despite ongoing WLA negotiations this month, no additional strikes occurred, allowing active response to global demand. Especially after the final agreement on the 18th, Korea GM has forfeited the usual two-week year-end holiday and is operating production lines at full capacity with overtime and special shifts.

Accordingly, Korea GM has reset its goal to achieve a turnaround to profitability next year, based on strong Trailblazer exports, after failing to do so this year since 2014. Korea GM recently set its domestic plant production plan for next year at approximately 415,000 units. The Bupyeong Plant 1, where the Trailblazer is produced, accounts for the largest share at about 243,000 units. Excluding some domestic demand, a significant portion of this is expected to focus on Trailblazer exports. Additionally, if exports of the Trax and Spark, which sharply declined this year due to the COVID-19 impact, recover next year, Korea GM is expected to comfortably achieve annual exports around 350,000 units, as in previous years.

An industry insider said, "Since it is unlikely that exports of existing key models like the Trax will rapidly expand in the short term, Korea GM’s future fate essentially depends on Trailblazer exports. To achieve profitability next year, it is essential to respond quickly to North American market demand without production delays."

This content was produced with the assistance of AI translation services.