Increasing Production and Expanding Exports Drive... KG Presents Future Blueprint

KG Mobility Future Development Strategy Meeting
Gwak Jaeseon "Increase Sales and Return to Profit"
Reveals Roadmap for New Cars and Technology Development Including Electric Vehicles
Factory Line Adjustment and Expansion Boost Export Volume

KG Mobility is adjusting its factory production lines to flexibly match production volume with market demand. The company also plans to increase its export volume to Europe by establishing a corporation in Germany.

On the 21st, KG Group Chairman Kwak Jae-sun said, "We are carrying out renovation work at the Pyeongtaek plant with an investment of 50 billion KRW," adding, "If completed within this year, it will be possible to simultaneously produce various car models on both lines starting next year."

Kwak Jae-sun, Chairman of KG Group, is making a presentation at the 'KG Mobility Future Development Strategy' meeting on the 21st.

KG Mobility's Pyeongtaek plant has assembly lines 1 through 3. Line 1 produces monocoque-type vehicles such as Torres and Tivoli, while Line 3 manufactures frame-body vehicles like the Rexton. Line 2, which previously assembled models like the Chairman, is currently not in operation. The renovation involves integrating Lines 2 and 3 to enable mixed production of both monocoque and frame-body types.

The increase in production volume after the renovation will be decided later through consultations with the labor union. The current production volume is about 140,000 units per year. During the former SsangYong Motor era, the facility was equipped to produce up to 250,000 units annually. However, even at peak production, the maximum was around 160,000 units.

A new battery pack factory for electric vehicles will also be built next year, utilizing idle land within the Changwon engine plant, which has a low operating rate. Chairman Kwak stated, "We have never considered relocating the Pyeongtaek plant," and added, "We are also reviewing the option of building a sub-factory within the current Pyeongtaek plant to increase production volume in the short term."

Kwack Jae-sun, Chairman of KG Mobility, visited the Edison Motors factory in Hamyang last July and toured the production line. [Image source=Yonhap News]

The electric vehicle lineup will also be expanded. The company currently sells the Korando e-Motion and recently launched the Torres EVX. Starting next year with an electric pickup truck, they plan to sequentially release the Korando successor electric vehicle (KR10 EV) the following year, and the Rexton successor electric vehicle (F100 EV) in 2026. A high-performance hybrid SUV is also scheduled for release in 2025.

They have also disclosed plans to import an electric vehicle-exclusive platform from overseas companies to reduce risks during the development process. This platform will be applied to monocoque-type electric vehicles to be launched after 2026. A wireless charging electric vehicle is also planned for release next year.

KGM Commercial (formerly Edison Motors) plans to add various models, including a 6-meter mid-sized electric bus, starting with a 9-meter electric bus next year. Currently, the company only manufactures 11-meter electric buses. They are exporting semi-knocked down (KD) kits in cooperation with a local Vietnamese company and are considering expanding this from passenger cars to buses.

Mid-size electric SUV Torres EVX. Customer deliveries will begin this November. It is also scheduled to be launched overseas within this year.

Overseas sales will also be increased. The new corporation to be established in Germany will serve as an advanced base for European market penetration and will begin operations in the fall of next year. The focus will be on raising brand awareness with eco-friendly vehicles such as electric and hybrid cars. In emerging markets, they plan to operate region-specific specifications and diversify sales networks including direct sales and online channels. For regions with high tariffs on finished vehicles, they will establish a KD export system by major hubs. Negotiations are underway for KD exports to Mexico, considering demand in the North American market. Including KD exports, the goal is to establish an annual sales system of 320,000 units by 2026.

Chairman Kwak said, "Although the business environment has become challenging, we expect to generate operating profits in both the third and fourth quarters and achieve an annual profit as well," adding, "Our goal is to double this year's export amount of 1 billion USD next year."

Entrance of KG Mobility Pyeongtaek Plant＜Photo by Yonhap News＞

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