Korea GM has secured a total investment of US$ 600 million, followed by reports indicating that the production of small sport utility vehicles (SUVs) has surpassed two million units.

The company is assessed to have addressed renewed speculation regarding a potential withdrawal, which had been re-ignited by US tariffs, and is positioned as General Motors' small SUV production base. The Trax crossover produced at the Changwon plant has contributed to this output.

Asif Katri, Executive Vice President of Overseas Business at GM, stated during a press conference at GM's Changwon plant in South Korea, "The news regarding a withdrawal differs from the reality, and GM will continue to operate in Korea and leverage its assets."

Katri further stated, "GM aims to address withdrawal concerns through actions such as continued investment and the installation of a 500,000-ton press facility. If GM intended to withdraw from South Korea, there would be no reason to continue these investments."

GM Korea disclosed last month that the combined cumulative production of the Chevrolet Trax Crossover and Trailblazer (including derivative models) has exceeded two million units during a press conference.

Both models were planned, designed, engineered, and produced in South Korea. Last year, total sales in the US market accounted for a 43% share of the small SUV segment.

Katri stated, "The production milestone of two million units for the Chevrolet Trax SUV and Trailblazer indicates the role of GM's Korean operations within the global production network."

He reiterated that the Korean market serves as a production base for GM.

Katri explained, "GM's factories in Korea are operating at full capacity in cooperation with labour unions. Production facilities in Changwon and Bupyeong, along with the six-speed automatic transmission (GF6) production plant in Boryeong, are operating at full capacity."

He added, "The focus should now be on maintaining current productivity levels and working with labour unions, rather than discussing the possibility of withdrawal."

Yoon Myung-ok, Chief Marketing Officer of GM Korea, stated, "Korea is the fourth market globally where GM operates four brands. Although the market size is relatively small, the presence of all four brands indicates its role within the company's operations."

The Changwon plant, which exclusively produces the Trax crossover - an export model from Korea - has a utilisation rate of 95% among GM's production bases.

However, amid the global transition towards electrification, the absence of electric vehicle production allocation at the Bupyeong and Changwon plants is considered a risk.

Katri explained, "Demand for vehicles produced in Korea exceeds current production capacity. However, investments in products and facilities are significant, and teams focusing on new energy vehicles, including EVs, hybrids, and plug-in hybrids, are exploring options."

Lee Dong-woo, Vice President of Production at GM Korea, also addressed the issue, stating, "The Changwon plant already has experience in producing electric vehicles. The facility has the infrastructure to manufacture various vehicle models, but such production is not currently being pursued."

He further added, "Compact SUVs are likely to be among the last internal combustion engine vehicles to remain in production. As customer demand for compact SUV models continues, production in Korea is expected to continue."

Finally, Katri addressed the situation in the Middle East, stating, "There has been no direct negative impact. This is due to the functioning of GM's global purchasing and supply chain divisions, as well as measures implemented by the Korean government to limit the impact on the automotive industry."