GM may consider producing EVs in South Korea

CHANGWON, South Gyeongsang Province -- General Motors Co. may consider making electric vehicles in South Korea, the country manager said on Wednesday, alleviating some concerns over the future of the US automaker’s manufacturing unit in the Asian nation due to a lack of producing eco-friendly models.

GM Korea Co. aims to turn to the black next year by boosting its production volume to up to 500,000 units including a new crossover utility vehicle (CUV), its President and CEO Roberto Rempel said.

“GM has yet to start the process for selecting EV production bases,” Rempel said in a press conference to mark the 20th year of GM Korea. “South Korea could become a candidate.”

Rempel, however, said GM Korea does not have capabilities for EVs currently as its two plants with new equipment are poised to focus on vehicles with internal combustion engines. The South Korean unit needs to switch plant facilities to produce EVs, he added.

GM Korea plans to release 10 EVs in the country, but GM has not decided which models will be locally produced.

GM was expected not to produce EVs in South Korea as the top US automaker aims to maximize the benefit of Washington’s tax credit on the eco-friendly automobiles, industry sources in Seoul have said.

TURNAROUND

GM Korea plans to produce the new CUV from the first quarter of next year at its Changwon plant, about 300 kilometers southeast of Seoul, for a target of a turnaround in 2023.

The company is expected to stay in the red in 2022 after reporting net losses for eight consecutive years through 2021.

To achieve the target, GM Korea invested 900 billion won ($630.5 million) in the Changwon plant to ramp up the factory’s annual capacity to as many as 280,000 units with the best facilities among those of GM’s global plants.

Another South Korean factory in Bupyeong, Incheon, just west of Seoul, manufactures the Trailblazer, a small sport utility vehicle, and others.

Rempel stressed flexible labor culture for the company’s success.

“If we get more labor flexibility… the South Korean business will be better and we will enjoy more opportunities for re-exports,” he said.

In July, Rempel has said in an interview with local media that EVs require more labor flexibility than internal combustion engine cars.

Write to Hyung-Kyu Kim at khk@hankyung.com
Jongwoo Cheon edited this article.