By Kim Tae-jong
The international operations chief of General Motors said Friday that the automaker will invest about 8 trillion won in its Korean affiliate over the next five years, refuting rumors that the U.S. car manufacturer will withdraw its business from the local market.
"General Motors is committed to the operation here in Korea. We are committed to Korea," said Tim Lee, GM's global manufacturing vice president, during a news conference at GM Korea's headquarters in Bupyeong, Incheon. "We will stay here, and we intend to make a return on this investment."
The remarks came amid rumors that the U.S. automaker plans to withdraw its operations from Korea, based on recent decision to stop manufacturing the next generation compact sedan Cruze at its Gunsan Factory from around 2014. It also took applications for voluntary retirement from employees last year.
But Lee, who serves as international operations president, emphasized that the 8 trillion won investment plan itself is proof of a strong commitment to the Korean market. He also said recent management decisions were in line with efforts to stay competitive.
The investment over the next five years can be seen as a huge commitment, given the fact that GM has invested about 10 trillion won in its Korean unit in the past 10 years.
The investment comes as part of GM Korea's future plan, GMK 20XX ― Competitiveness & Sustainability, which highlights its focus on strengthening engineering and manufacturing capabilities in order to develop globally competitive products.
GM Korea President and CEO Sergio Rocha said 20XX can mean the year 2099, depending on the success of their efforts in achieving competitiveness and sustainability.
"Designing, building and selling the world's best vehicles is GM's vision," Rocha said. "GM Korea will focus on four core elements: Korea's domestic market, a global design and engineering center, a global manufacturing center and a global CKD (complete knockdown) center of excellence."
He said GM Korea will increase its domestic market share to double-digits from 9.5 percent last year, also improving its sales network, redefining customer service activities and strengthening its Chevrolet and Cadillac dual-brand strategy.
It will also strengthen its global design and engineering capabilities for mini and small cars. It plans to expand the design center at its Bupyeong headquarters, to become GM's third-largest globally after those in the U.S. and Brazil. It will double in size, with construction to be completed by the end of this year.
The company also said it will produce six next-generation GM vehicles for global sales and power trains, including mini, small and midsize cars, as well as GM's first fully electric vehicle for international markets.
GM Korea, which exported more than 1.27 million vehicles as CKD kits in 2012, set global CKD capability enhancement as one of the company's core elements.
GM Korea will seek to make its CKD business the benchmark for GM's worldwide operations by reducing costs, improving productivity, carrying out alternative sourcing and other means.
"GM Korea is expected to be reborn as a more competitive automaker through successful execution of the GMK 20XX – Competitiveness & Sustainability plan," Rocha said. "Based on our first 10 years of accomplishments, GM Korea has now begun a new era for the next decade and beyond."
Lee also added that the automaker must first be competitive enough to stay in Korea and grow.
"The point is we, as a company, are making a huge investment here in Korea. Our commitment to our shareholders means we will use our capital effectively and make capital pay. Otherwise, we don't have a business. The objective here is no different from objectives anywhere in the world," he said.
GM Korea sold 145,702 vehicles locally last year, up 3.6 percent from the previous year, while it saw a 1.9 percent drop in exports to 654,933 vehicles.
 |
| GM Korea President and CEO Sergio Rocha, left, and GM Global Manufacturing Vice President Tim Lee attend a news conference at GM Korea's headquarters in Bupyeong, Incheon, Friday. / Courtesy of GM Korea |
"General Motors is committed to the operation here in Korea. We are committed to Korea," said Tim Lee, GM's global manufacturing vice president, during a news conference at GM Korea's headquarters in Bupyeong, Incheon. "We will stay here, and we intend to make a return on this investment."
The remarks came amid rumors that the U.S. automaker plans to withdraw its operations from Korea, based on recent decision to stop manufacturing the next generation compact sedan Cruze at its Gunsan Factory from around 2014. It also took applications for voluntary retirement from employees last year.
But Lee, who serves as international operations president, emphasized that the 8 trillion won investment plan itself is proof of a strong commitment to the Korean market. He also said recent management decisions were in line with efforts to stay competitive.
The investment over the next five years can be seen as a huge commitment, given the fact that GM has invested about 10 trillion won in its Korean unit in the past 10 years.
The investment comes as part of GM Korea's future plan, GMK 20XX ― Competitiveness & Sustainability, which highlights its focus on strengthening engineering and manufacturing capabilities in order to develop globally competitive products.
GM Korea President and CEO Sergio Rocha said 20XX can mean the year 2099, depending on the success of their efforts in achieving competitiveness and sustainability.
"Designing, building and selling the world's best vehicles is GM's vision," Rocha said. "GM Korea will focus on four core elements: Korea's domestic market, a global design and engineering center, a global manufacturing center and a global CKD (complete knockdown) center of excellence."
He said GM Korea will increase its domestic market share to double-digits from 9.5 percent last year, also improving its sales network, redefining customer service activities and strengthening its Chevrolet and Cadillac dual-brand strategy.
It will also strengthen its global design and engineering capabilities for mini and small cars. It plans to expand the design center at its Bupyeong headquarters, to become GM's third-largest globally after those in the U.S. and Brazil. It will double in size, with construction to be completed by the end of this year.
The company also said it will produce six next-generation GM vehicles for global sales and power trains, including mini, small and midsize cars, as well as GM's first fully electric vehicle for international markets.
GM Korea, which exported more than 1.27 million vehicles as CKD kits in 2012, set global CKD capability enhancement as one of the company's core elements.
GM Korea will seek to make its CKD business the benchmark for GM's worldwide operations by reducing costs, improving productivity, carrying out alternative sourcing and other means.
"GM Korea is expected to be reborn as a more competitive automaker through successful execution of the GMK 20XX – Competitiveness & Sustainability plan," Rocha said. "Based on our first 10 years of accomplishments, GM Korea has now begun a new era for the next decade and beyond."
Lee also added that the automaker must first be competitive enough to stay in Korea and grow.
"The point is we, as a company, are making a huge investment here in Korea. Our commitment to our shareholders means we will use our capital effectively and make capital pay. Otherwise, we don't have a business. The objective here is no different from objectives anywhere in the world," he said.
GM Korea sold 145,702 vehicles locally last year, up 3.6 percent from the previous year, while it saw a 1.9 percent drop in exports to 654,933 vehicles.
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