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Korea Herald
16-05-2025
- Automotive
- Korea Herald
GM Korea CEO visits Changwon plant amid US tariff-related exit concerns
The chief executive officer of GM Korea Co., the South Korean unit of General Motors Co., has visited the automaker's Changwon plant to encourage employees amid growing concerns over a potential withdrawal driven by shifting US tariff policies, the company said Friday. GM Korea CEO Hector Villarreal visited the plant, located 298 kilometers southeast of Seoul, on Thursday to meet with employees and reinforce on-site management, the company said in a press release. Speculations over GM's possible exit from South Korea have been mounting following the imposition of a 25 percent tariff on imported vehicles in the United States since April, along with the automaker's lack of new models and sluggish sales. GM Korea ships about 85 percent of its exports to America. The Detroit-based automaker operates two plants in South Korea: one in Bupyeong, just west of Seoul, and another in Changwon. The Bupyeong plant produces the Trailblazer sport utility vehicle, while the Changwon factory manufactures the Trax Crossover for both domestic sales and exports. In the January–April period, GM Korea's sales fell 9.1 percent to 154,161 vehicles, down from 169,638 units a year earlier. (Yonhap)
Korea Herald
02-05-2025
- Automotive
- Korea Herald
GM Korea's April sales fall 6.3% on weaker demand
GM Korea Co., the South Korean unit of General Motors Co., said Friday its sales fell 6.3 percent in April from a year earlier on lower demand for its models. The company sold 41,644 vehicles last month, down from 44,426 units in the same period last year, the company said in a press release. Domestic sales plunged 42 percent on-year to 1,326 units last month from 2,297, while exports declined 4.3 percent to 40,318 from 42,129. From January to April, total sales dropped 9.1 percent to 154,161 units from 169,638 a year earlier. Domestic sales tumbled 41 percent to 5,434 units from 9,216, while exports were down 7.3 percent to 148,727 from 160,422. As part of a two-track strategy, GM Korea sells both domestically assembled and imported vehicles in South Korea, Asia's fourth-largest economy. Its current lineup is composed of two locally assembled models -- the Trailblazer SUV and the Trax Crossover -- and two imported models -- the Colorado pickup and the GMC Sierra Denali pickup. (Yonhap)
Korea Herald
16-04-2025
- Automotive
- Korea Herald
GM Korea to increase vehicle production amid US tariff-related exit concerns
GM Korea Co., the South Korean unit of General Motors Co., plans to increase production at its Incheon plant by about 9 percent this year, the company's labor union said Wednesday, easing concerns over a potential withdrawal amid growing uncertainty over the United States' tariff policies. According to the union, the company recently said it would allocate an additional 21,000 vehicles to the plant in Bupyeong, Incheon, west of Seoul, for production this year. The increase amounts to nearly 9 percent of the plant's annual production capacity of 250,000 units. The move comes as speculation has grown about a possible exit of GM from South Korea in response to Washington's 25 percent tariff on imported vehicles. GM Korea ships about 85 percent of its exports to America. According to the union, the added production volume signals that GM intends to maintain the South Korean base as a key export hub. "The decision to boost production will likely ease some of the anxiety among our members," a union official said. The union plans to hold a meeting with management to reflect the updated production plan in next month's work schedules. A separate labor-management meeting is also scheduled for later this month to discuss countermeasures against US tariff policies and strategies for stable operations. (Yonhap)
Korea Herald
28-03-2025
- Automotive
- Korea Herald
Automotive industry calls for measures to soften blow from US tariffs
The South Korean automotive industry on Friday called for measures to soften the anticipated fallout from the US administration's plan to impose auto tariffs and reciprocal tariffs next week, according to officials. Local industry representatives made the call during a meeting with First Vice Industry Minister Park Sung-taek, who visited Kia Corp.'s car manufacturing facility in Gwangmyeong, just south of Seoul, and a major export port in Pyeongtaek, about 65 kilometers south of Seoul, according to the Ministry of Trade, Industry and Energy. The meeting came amid mounting concerns over the impact of the planned US auto tariffs on the local industry, which heavily relies on export. US President Donald Trump signed a proclamation on Wednesday to impose 25 percent tariffs on all imported cars and key auto parts. They are set to take effect next Wednesday. The ministry said industry officials asked the government to continue negotiations with the Trump administration to prevent Korean carmakers from getting unfavorable treatment compared to their rivals under the US tariff scheme. They also urged measures to support auto parts manufacturers expected to be dealt a big blow from Washington's moves, such as an emergency liquidity program and consultations on market diversification. In particular, concerns have swirled among industry observers that GM Korea Co., the South Korean unit of General Motors Co., may pull out of the country, as 85 percent of vehicles produced by the company are exported to the US. In an investors conference on Jan. 29, GM Korea's Chief Financial Officer Paul Jacobson reportedly said the company may need to consider relocating its manufacturing facilities if the US tariffs become permanent. The ministry plans to devise emergency response measures to US auto tariffs next month, including ways to improve environment for corporate investments here. (Yonhap)
Korea Herald
07-03-2025
- Automotive
- Korea Herald
Govt. to devise response measures to US auto tariff plan next month
The government will come up with measures next month to respond to the United States' plan to impose tariffs on auto imports, the industry ministry said Friday, as the new US tariffs are expected to deal a severe blow to the South Korean automotive industry. The Ministry of Trade, Industry and Energy announced the move at a meeting with officials from automakers, including local industry leader Hyundai Motor Co. and GM Korea Co., the South Korean unit of General Motors Co., according to ministry officials. In the meeting, attendees assessed that the proposed US tariffs on auto imports will likely slow down South Korea's exports to the US, also adversely affecting the local auto-parts making industry, the ministry said. The Korean automakers urged the government to emphasize the contributions they have made to the US economy through massive investments there, calling for comprehensive efforts to respond to Washington's tariff scheme. They also called for various support measures to minimize the impact on the industry, such as diversification of export destinations and policy financing, the ministry said. (Yonhap)
