GM Korea to invest W100 bil. for retooling
GM Korea will roll out its small SUV, the Trax, early next year. The vehicle is equipped with a turbocharged engine, which will be manufactured in the automaker’s Bupyeong plant in Incheon. / Courtesy of GM Korea
By Kim Tae-jong
GM Korea, the local unit of General Motors, said it will invest more than 100 billion won in expanding its facilities to produce turbocharged engines. It believes that new fuel-efficient powertrains will support the automaker’s local lineup and manufacturing.
“This significant investment is clear evidence of GM's long-term commitment in GM Korea and confidence in our ability to offer more advanced engines to satisfy our customers,” said GM Korea President and CEO Sergio Rocha.
“As car buyers continue to make fuel efficiency and performance a priority, we must remain committed to developing competitive, innovative solutions to exceed their expectations,” he said.
The nation’s third-largest automaker said it will expand its Bupyeong engine plant in Incheon to produce the next-generation four-cylinder turbocharged engines. These engines will power small sport utility vehicle the Chevrolet Trax from the first half of next year as well as other compact cars, and the vehicles with new powertrains will be sold at home and abroad, it added.
“The size of the investment could be much bigger than 100 billion won, actually close to 200 billion won, because there is still room for more investment depending on sales and production capacity,” a GM Korea official said.
The production of downsized gasoline turbo engines is meaningful because the Bupyeong factory will be GM's third plant in the world to produce the next-generation engines following the U.S. and Europe, he said.
The Chevrolet Cruze Eco and the Sonic, are already sold with a 1.4-liter turbo gasoline engine, and they are proving to be two of the Best Family Cars for 2012 with the best fuel economy and performance according to Edmunds.com and Parents magazine. The Sonic is marketed here as the Aveo.
GM Korea said the massive amount invested by GM Korea in the local market is in line with the automaker’s long-term business plan, as it has invested an average of more than 1 trillion annually in Korea over the last 10 years.
During its 10th anniversary celebrations in October, the company also announced that it will continue to make significant investments annually in new vehicles and powertrains, eco-friendly vehicles and design and engineering.