GM CFO: No Immediate Adjustment to Korean Production... Profitability Remains Positive

Mentioned During the Conference Call on the 29th (Local Time)

The Chief Financial Officer (CFO) of General Motors (GM) stated that there are no plans to adjust production volumes in Korea for the time being, offering a positive assessment of the profitability contribution of the Korean plant. This comment draws attention as speculation about GM's withdrawal from Korea continues to surface, following the imposition of a 25% tariff on finished vehicles by the Donald Trump administration in the United States.

According to industry sources on June 1, Paul Jacobson, GM's CFO, said during the 41st Bernstein Conference Call held on May 29 (local time), regarding potential changes in strategy for the Korean plant in response to shifts in U.S. auto tariffs, "We intend to take a wait-and-see approach," and added, "Through negotiations with the Trump administration, Korea will remain a key partner for the United States. This is optimistic."

He further stated, "I do not want to rush decisions that should be made in the long term under a scenario where a 25% tariff is imposed," and added, "The highest likelihood we see now could become even lower."

Korea GM Trailblazer. Provided by Korea GM

Jacobson, the CFO, also gave high marks to the profitability contribution of GM Korea. Referring to the Chevrolet Trax and Trailblazer, compact SUVs produced in Korea, he emphasized, "The profitability contribution of these vehicles remains positive." He added, "The business in Korea is truly strong, and I believe the vehicles currently produced in Korea are better than ever, with still many opportunities ahead."

In response to these remarks, U.S. local media outlets analyzed that GM's management would find it difficult to adjust production volumes easily due to the high economic efficiency and strong popularity of Korean-produced models in the U.S. market.