Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
GM Korea clears exit rumor with strong commitment to local production
Asif Khatri, vice president of manufacturing at GM International Operations, speaks during a media briefing at GM Korea's factory in Changwon, South Gyeongsang Province, Tuesday. Courtesy of GM Korea
By Lee Min-hyung
Carmaker achieves cumulative production of 2 million Trax, Trailblazer vehicles
CHANGWON, South Gyeongsang Province — General Motors (GM) Korea has dismissed rumors of its potential withdrawal, reaffirming its strong commitment to local production — a move positioning Korea as a strategic hub for small SUVs for export, senior executives from the carmaker said.
In a guided tour of its key production line in Korea, the carmaker underscored that its Changwon factory hits an operation rate of around 95 percent throughout the year.
The factory holds a symbolic title as the nation’s biggest auto production line in terms of the number of vehicle exports. The plant started mass production of GM Korea’s mega-hit Chevrolet Trax Crossover in 2023, maintaining the status for three consecutive years until 2025, driven by the vehicle’s solid sales in the United States.
“We will not engage in words, but we will respond to any rumors,” GM International Operations Vice President of Manufacturing Asif Khatri said during a media briefing at the factory. He is in charge of the carmaker’s global manufacturing.
“We have very strong demand for the vehicles that we are producing here. We will also continue to improve our manufacturing facility, so the carmaker can keep up with the strong demand.”
Robots assemble vehicle parts at GM Korea's plant in Changwon, South Gyeongsang Province, Tuesday. Courtesy of GM Korea
GM Korea identifies the country as a strategic base for production of small SUVs. The carmaker said it has achieved cumulative production of 2 million across two models — the Trax Crossover and the Trailblazer SUV.
The carmaker has been strengthening its competitiveness by building a robust product portfolio in response to growing global demand for small SUVs.
In particular, small SUV models produced in Korea have seen strong demand across global markets, including North America, South America and Central Asia, driving GM’s global sales growth.
Notably, the Chevrolet Trax Crossover and the Trailblazer, both fully developed, designed, engineered and manufactured by GM Korea, recorded combined sales of 422,792 vehicles in the U.S. last year, capturing approximately 43 percent market share in the small SUV segment there and demonstrating stable global demand.
GM Korea's small SUVs are parked for exports at a port in Changwon, South Gyeongsang Province, Wednesday. Courtesy of GM Korea
“Reaching 2 million units in production of the Chevrolet Trax Crossover and Trailblazer is a meaningful milestone that highlights the strategic importance of GM Korea within our global manufacturing network,” the GM executive said.
“As vehicles produced in Korea continue to deliver strong demand and performance globally, GM will further strengthen the competitiveness of its Korean operations through continued investment.”
GM Korea’s Incheon and Changwon plants have established themselves as core global production bases for GM’s small SUVs, supported by advanced automation systems and quality competitiveness, according to the carmaker.
The carmaker also pledged to achieve co-prosperity with partner firms, in a bid to quell the exit rumors.
Bang Sun-il, vice president at GM Korea's global purchasing and supply chain division, speaks during a media briefing at its Changwon plant in South Gyeongsang Province, Tuesday. Courtesy of GM Korea
“Together with approximately 1,600 Korean partner companies, GM Korea has built an industrial ecosystem worth about 5.5 trillion won ($3.72 billion) annually,” said Bang Sun-il, vice president at the carmaker’s global purchasing and supply chain division.
“Based on a virtuous cycle connecting production, suppliers, employment and regional economies, we are continuously strengthening our global supply chain competitiveness.”
Meanwhile, the Chevrolet Trax Crossover, an entry-level crossover model combining sedan-like sophistication with SUV practicality, has notably recorded nearly 1 million cumulative sales since its launch in 2023. The vehicle serves as a major profit driver for GM Korea.
The Chevrolet Trailblazer, launched globally in 2020, has also become a steady seller for the Chevrolet brand.
GM Korea is on track to clear the withdrawal rumor with a huge investment pledge unveiled in March. The $600 million investment plan is aimed at boosting competitiveness of its Korean production lines and turning them into a key base for small SUV production.