Korea GM Visited by Mary Barra, Starts Efforts to Attract PHEV Production

Korea GM Labor and Management to Hold Future Development Committee Meeting After Holidays
Discussion on PHEV Production Attraction Plan Intensifies
Chairman Mary Barra Visits Korea... Korea's Status in Eco-friendly Vehicle Supply Chain Elevated
Government Also Supports PHEV Production Attraction Efforts

The labor and management of Korea GM are set to intensify discussions to attract production of plug-in hybrid vehicles (PHEVs) for export to North America. Following GM Chairman Mary Barra's recent visit to Korea, which confirmed Korea's influence in the global eco-friendly vehicle supply chain, there is analysis that Korea GM has gained momentum in securing PHEV production.

According to industry sources on the 8th, Korea GM's labor and management will hold a Future Development Committee meeting shortly after the Lunar New Year holiday to discuss plans to attract PHEV production for North American exports. The Future Development Committee is a consultation channel between labor and management stipulated in the union collective agreement. It covers various topics such as upcoming production volumes and employment stability, and seeks to explore the future direction of Korea GM.

Although no official announcement has been made yet, efforts to attract PHEV production at Korea GM have been steadily underway behind the scenes. In January, Gerald Johnson, Global GM Vice President of Production, visited Korea and toured Korea GM’s production lines. At a meeting with the union, Vice President Johnson directly mentioned, "Engineering-level reviews are underway for PHEV production at the Korean plant." Recently, at an official event, Hector Vizcarra, President of Korea GM, stated, "There are no plans to convert the Korean plant to an electric vehicle production line in the short term. However, there is a strong alternative," strongly implying the possibility of attracting PHEV production.

Moreover, GM Chairman Barra’s sudden visit to Korea the day before is interpreted as a positive signal. During her brief one-night, two-day schedule, Chairman Barra met with senior executives from Samsung and LG to discuss broad cooperation plans in the next-generation future vehicle sector. Korea has a robust supply chain in next-generation mobility fields, ranging from battery materials to battery manufacturing, vehicle electronics, and displays. Industry insiders regard Chairman Barra’s first visit to Korea as a clear example demonstrating Korea’s importance in the global eco-friendly vehicle supply chain.

Recently, due to a global slowdown in electric vehicle demand, GM has slowed the pace of its initial electric vehicle transition plans. The plan to produce 400,000 electric vehicles in North America by 2024 was withdrawn, and this year’s production target was lowered to 200,000?300,000 units. However, through this visit, Chairman Barra expressed that GM’s overall electric vehicle transition plan remains valid and that the partnership with Korean battery companies will be solidified.

Mary Barra, GM Chairwoman [Photo by Yonhap News]

Our government is also actively supporting Korea GM’s efforts to attract PHEV production. In July last year, the government revised the enforcement decree to allow foreign-invested companies converting existing factories into eco-friendly vehicle facilities to receive cash subsidies. This law applies only to companies managing businesses involving advanced technologies and advanced products, and it includes not only electric vehicles but also PHEVs.

With strengthened status within the supply chain and active government support, Korea has recently been recognized as an emerging production base in the global eco-friendly vehicle market. Another foreign-invested company, Renault Korea, will produce hybrid vehicles at its Busan plant in the second half of this year and launch them in the global market. From the second half of 2025, it will also undertake contract production of Polestar’s pure electric vehicle ‘Polestar 4’ at the Busan plant. Amid global competition among factories to attract electric vehicle production, the stable battery supply chain of the Busan plant has been highlighted as a key factor in its final selection.

Currently, the Polestar 4 produced in China is equipped with Chinese CATL batteries. However, due to U.S. restrictions under the Inflation Reduction Act (IRA), Chinese batteries cannot be installed in electric vehicles exported to North America. Therefore, Polestar 4 units produced at the Busan plant and exported to North America are highly likely to be equipped with Korean batteries. For the ‘Polestar 5,’ which Polestar will launch following the Polestar 4, SK On batteries have been confirmed for installation.

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