GM to invest W1 trillion every year

Firm to focus on developing new vehicles, powertrains here

By Kim Tae-jong

GM Korea President and CEO Sergio Rocha pledged Thursday to continue to invest more than 1 trillion won every year in the development of new vehicles and powertrains as part of the company’s growth strategy.

The plan comes as the local unit of the American automaker celebrated the 10th anniversary of its advancement into the Korean market this month.

“Our company has played an important role in the global growth of General Motors and Chevrolet in Korea and worldwide since its launch in 2002,” Rocha said during a news conference at the automaker’s headquarters in Bupyeong, Incheon. “The investment in the coming years will enable us to deliver greater value to our customers.”

He also said the automaker will enhance profitability to the level of Hyundai Motor and Kia Motor and it is now moving in the right direction to achieve that goal.

GM Korea is the third-largest automaker here and represents one of GM's largest manufacturing, design and technology hubs. It operates five manufacturing facilities in Korea as well as an assembly facility in Vietnam.

GM Korea launched the Chevrolet brand to the local market last year to expand its production portfolio, which includes the Spark, Aveo, Cruze, Orlando, Malibu and Captiva.

In 2011, GM Korea sold more than 2.05 million vehicles at home and abroad, and produces one out of every four Chevrolets sold worldwide.

Rocha also said that GM Korea will seek a shared growth of Chevrolet and GM’s luxury brand Cadillac from 2013, emphasizing that Cadillac will introduce the company’s value of luxury and advanced technology.

Along with external growth, the automaker has also made efforts to enhance the quality of its customer services and last month it received the highest score in a customer service index study carried out by automotive market research firm Marketing Insight.

Celebrating a successful 10th anniversary, GM Korea also plans to leverage its parent company’s worldwide resources to develop new models and eco-friendly and high-efficiency powertrains.

In addition, the firm said it will introduce next-generation models to the Korean market, starting with the Chevrolet Trax, small-sized sport utility vehicle, to be released in the first half of 2013.

It will also begin producing the all-electric Chevrolet Spark at its Changwon plant next year. The small car will be sold in Korea and exported to several markets, including the United States, starting in 2013.

“The Spark BEV combines the practicality of a mini-car with the environmental friendliness of an electric vehicle,” said Rocha. “As GM’s first fully electric vehicle in the Korean market, it will showcase Korea’s important role in GM’s long-term global vehicle strategy.”

In addition to the development of electric vehicles, GM Korea will also build solar power facilities at one of its manufacturing plant in cooperation with KC Cottrell to be more faithful to the commitment to the protection of environment.

For longer-term growth, GM Korea said it will strengthen its design and product development capabilities, believing it an essential requirement.

The GM Korea Design Center at the company’s Bupyeong headquarters will double in size to include new modeling studios, display spaces and areas for creative work with the expansion to be completed by the end of next year, the company said.

GM Korea is a cornerstone of GM’s global design organization,” said Rocha. “The expanded GM Korea Design Center will give us an edge over the competition as we continue developing exciting new vehicles for Korea and the world.”

In addition, GM Korea will further expand its vehicle test capabilities at its Cheongna Proving Ground in Incheon.

New facilities in the proving ground will enable the automaker to further enhance its product development capabilities by carrying out more strict and diverse tests than ever before.