Trailblazer with Export Wings... Will It Become a Leading Benefactor for Mid-sized Companies?

Chevrolet Trailblazer

Buick Encore GX

[Asia Economy Reporter Sung Ki-ho] Korea GM is set to fully implement its 'export two-track' strategy for its compact sport utility vehicle (SUV). Following the export launch of the Buick Encore GX at the end of last year, the Trailblazer is expected to begin overseas shipments as early as the end of this month. The Trailblazer is a domestically produced vehicle for which Korea GM is responsible for design, production, and export. Attention is focused on whether the Trailblazer, embarking on its first export journey, can establish itself as a savior to elevate Korea GM, which is facing management difficulties, to the forefront of mid-sized automakers.

According to the automotive industry on the 22nd, the Trailblazer, which held its mass production ceremony on the 31st of last month, will start its first export shipment by the end of this month or early next month. The timing is flexible due to the impact of the novel coronavirus (COVID-19). Some export shipments are currently being loaded, with the majority of the volume expected to be exported to the North American region.

Korea GM has been producing and exporting the Buick Encore GX since December last year. The Buick Encore GX is a global new vehicle developed and produced domestically by Korea GM and shares a platform with the Chevrolet Trailblazer, making them sibling models. GM is employing a 'two-track strategy' to capture the world's largest North American compact SUV market by targeting it with different brands. A Korea GM official stated, "The Encore GX and Trailblazer are sold simultaneously under the Buick and Chevrolet brands, respectively, in North America."

The sales target for the Trailblazer this year is 300,000 units, with 20-30% expected to be sold domestically, estimating overseas export volumes between 210,000 and 240,000 units. Therefore, the Trailblazer's first export is anticipated to symbolize the normalization of Korea GM's management.

Export performance is also expected to be strong. The Encore GX exported 8,704 units in December last year and about 7,000 units in January this year. With the addition of the Trailblazer, export results are projected to increase further.

The variable is COVID-19. Korea GM explains that export schedules are highly volatile due to the impact of COVID-19 and other factors. A Korea GM official explained, "More substantial shipments will take place at a future point when the vehicle is launched and sales begin in the global market."

If the Trailblazer's domestic sales proceed smoothly following exports, Korea GM will be in a position to firmly secure the top spot among the three mid-sized automakers. With March, a month when vehicle sales typically rise, Korea GM has a definite 'new model' advantage in the Trailblazer compared to competitors. SsangYong Motor has no new vehicle launch plans this year, and Renault Samsung is unable to finalize XM3 volumes due to labor disputes.

An automotive industry insider predicted, "As the Bupyeong plant increases its operating rate with Trailblazer production, the overall situation will improve," adding, "Korea GM's management normalization will gain further momentum."