The Headquarters Says "Continue Production"... Uncertain Korea GM

Labor-Management Visit to U.S. Headquarters Meeting
"Continue Production" Response
"No Atmosphere of Reducing Volume or Withdrawal"
High Export Volume Increases Tariff Burden

It has been confirmed that GM Korea, the GM Korea plant where the 'Cheolsu withdrawal' rumor had surfaced, received a response from the U.S. headquarters to maintain the current production system.

Until now, GM Korea had stated that it would "not withdraw" despite the 25% tariff on imported cars imposed by the Donald Trump administration, and the U.S. headquarters has confirmed this stance.

According to the industry on the 8th, the labor and management of GM Korea conducted a 'vision trip' to visit the U.S. General Motors (GM) headquarters last month. It is reported that Hector Vizarral, CEO of GM Korea, Robert Trim, Vice President of Labor Relations, and Ahn Gyu-baek, head of the Metal Workers' Union GM Korea branch, attended. A representative from the headquarters told them in a meeting, "Please continue the current production in Korea."

An insider familiar with the matter said, "The vehicles produced by GM Korea currently have a large backlog of orders in the U.S., so the intention was to continue production," adding, "There was no atmosphere of reducing Korean production volume or withdrawing the business."

However, it is reported that the headquarters will not respond significantly to requests for additional new production models or facility investments from GM Korea.

The models produced by GM Korea have recently contributed significantly to the growth of GM's sales in the U.S. GM sold a total of 693,363 units locally in the first quarter, with steady growth across its brands including Buick (39.3%), Cadillac (17.8%), Chevrolet (13.7%), and GMC (17.6%), driving the performance.

Yonhap News

In particular, SUVs and pickup trucks led the growth. Among them, the Trax sold 59,021 units, a 57.02% increase compared to the same period last year, setting an all-time sales record. The Trailblazer also sold 29,323 units, a 21.13% increase year-on-year.

Sales of the Buick Encore GX and Envision also rose by 52.71% and 53.82%, respectively, recording 20,408 and 14,862 units, establishing themselves as core growth models for the Buick brand.

GM Korea currently produces the Chevrolet Trax crossover at the Changwon plant, and the Chevrolet Trailblazer, Buick Encore GX, and Envision crossovers at the Bupyeong plant. Last year, it exported 418,782 units to the U.S., accounting for as much as 88.2% of total exports.

Despite these results, GM is facing a major crisis due to tariff policies. According to research firm GlobalData, GM imports about 46% of the vehicles it sells in the U.S.

To reduce the tariff burden, GM is expanding production within the U.S. Shortly after President Trump's tariff announcement, GM revealed plans to increase production of light-duty trucks at the Fort Wayne assembly plant in Indiana.