CEO Rempel strives to expand capacity in Korea
General Motors (GM) vows to turn a profit next year in Korea, wrapping up years of accumulating losses, through large-sized investment and increase of production.
In a ceremony to celebrate its 20th anniversary Wednesday, GM Korea noted that it had already invested 1.1 trillion won ($770 million) in a next-generation vehicle to be launched next year and secured annual capacity of 500,000 units.
Since 2014, GM Korea has suffered from losses, which totaled around 3.7 trillion won ($2.6 billion).
The half-million annual capacity is also a substantial rise compared to last year when the Incheon-based automaker churned out around 237,000 vehicles.
The company plans to come up with a blueprint designed to transform its operations in Korea into profitable business through introduction of new models in the coming years, according to its CEO Roberto Rempel.
“We expect the next-generation global vehicle to follow the Chevrolet Trailblazer in enjoying great success around the world,” Rempel said during the ceremony.
“We will serve Korean customers while brining the best vehicles from GM’s global brands, including the Chevrolet, Cadillac and GMC, to meet their needs of the various American lifestyles from practicality to the luxury vehicle experiences.”
Rempel noted that GM Korea would also support Korea to accelerate the transition to electric vehicles by launching 10 EVs across the brands by 2025.
“To turn a profit, GM Korea is required to expand its market share in South Korea and expand its exports to overseas markets,” Daelim University automotive professor Kim Pil-soo said.
“Currently, its brand lineup is seemingly not strong. It remains to be seen how its new models would be accepted in the domestic market. It needs a few best-selling models,” he said.