GM, Korea 20th Anniversary Ceremony... "Targeting Profit Turnaround Next Year" (Summary)

"Next-Generation Global New Cars, Timely Supply to Worldwide Markets"
"Launch of 10 Electric Vehicle Models in Domestic Market by 2025"
Reserved Stance on Electric Vehicle Production

[Changwon=Asia Economy Reporter Yoo Hyun-seok] On the 19th, GM held a commemorative ceremony at the Changwon plant to mark the 20th anniversary of its launch in Korea and presented strategies and future goals for transforming Korea GM’s growth business. Korea GM plans to maximize production at the Changwon and Bupyeong plants and introduce various brands to turn profitable.

At the event, GM celebrated the major achievements made in Korea over the past 20 years. It also announced its goal to transform GM’s Korean business into a profitable and sustainable business model based on the Changwon plant, where state-of-the-art facility investments have been made for the production of next-generation global new products.

President Roberto Rempel described GM’s milestones as a member of Korea’s economy and society over the past 20 years as follows: ▲ Over 9 trillion KRW invested in Korea since its launch in 2002 ▲ Approximately 26 million vehicles produced over the past 20 years (12 million complete vehicles, over 14 million semi-knocked down parts) ▲ Approximately 24 million vehicles exported to 140 countries (9.6 million complete vehicles, 14.4 million semi-knocked down parts).

Rempel said, “As Korea’s largest foreign-invested company, GM has contributed to Korea’s economic development by creating hundreds of thousands of jobs over the past 20 years, producing, selling, and exporting vehicles domestically, and designing and developing global vehicles,” adding, “We have continuously engaged in social contribution activities to coexist with local communities.” He further stated, “We are proud to have contributed to the development of Korea’s automotive industry ecosystem by achieving mutual growth through close cooperation with parts suppliers.”

Rempel then introduced GM’s investment progress for sustainable growth in Korea as follows: ▲ GM invested 900 billion KRW in the Changwon plant and 200 billion KRW in the Bupyeong plant ▲ The Changwon plant transformed into a world-class GM production base by securing production efficiency and flexibility through large-scale investments ▲ Application of GM’s latest global standard technologies and automated facilities in each process, enabling production of 60 vehicles per hour and capability to produce vehicles ranging from small to large.

Alongside the next-generation global new vehicles to be produced at the GM Changwon plant, another pillar targeting the global market is the Chevrolet Trailblazer produced at the Bupyeong plant. Over 380,000 Trailblazers have been exported worldwide to date.

In particular, Korea GM aims to return to profitability next year to normalize management. Production at the Changwon and Bupyeong plants will be maximized next year. Along with this, various brand models will be launched and costs adjusted to strengthen profitability. Rempel emphasized, “The Bupyeong and Changwon plants are expected to operate at full capacity for two years,” adding, “We will be able to launch vehicles without defects.”

Amy Martin, Chief Financial Officer (CFO), explained, “There have been significant cost-cutting efforts to turn profits, and we will maximize our capabilities including increasing and maximizing production and maximizing exports.”

Finally, Rempel outlined the blueprint for GM’s future growth business transformation in Korea as follows: ▲ Based on an annual production capacity of 500,000 units in 2023, GM will timely supply the Trailblazer and next-generation global new vehicles to global markets ▲ GM will strengthen domestic sales by expanding its portfolio through a multi-brand strategy ▲ GM plans to launch 10 electric vehicles in Korea by 2025, embodying its global electric vehicle leadership.

However, GM still showed a postponing attitude toward electric vehicle production. Rempel explained, “The decision on the electric vehicle production site involves multiple stakeholders and requires coordination,” adding, “There is no confirmed plan at this time.”

Rempel concluded, “We expect the next-generation global new products to achieve great success in global markets alongside the Chevrolet Trailblazer,” and said, “To meet customers’ demands for diverse American lifestyles, we will launch the best global models of Chevrolet, Cadillac, and GMC in Korea.”

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