View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 3, 2020

GM Korea reconfirms Changwon investment plan

GM Korea Company confirmed its plans to invest KRW800bn (US$667m) over the next few years were still on track despite the difficult trading conditions brought about by the global COVID-19 pandemic.

By bcusack

GM Korea Company confirmed its plans to invest KRW800bn (US$667m) over the next few years were still on track despite the difficult trading conditions brought about by the global COVID-19 pandemic.

Kaher Kazem, chief executive officer of the General Motors South Korean subsidiary, reconfirmed the plans during a visit to the plant in Changwon this week. 

General Motors has two vehicle assembly plants in South Korea, in Changwon and Bupyong, with a combined production capacity of 630,000 vehicles per year.

In the first half of 2020, its subsidiary's global sales amounted to just 166,098 units, down by 28% on already weak volume in the same period of last year.

A GM Korea spokesman confirmed KRW800bn would be invested in the next few years at the Changwon facility, in a new paint shop and other facilities, ahead of production of a new crossover utility vehicle in 2023.

The company launched the new generation Bolt electric vehicle in South Korea last month and last week confirmed it would focus more on the zero emission segment there which enjoys significant support in the form of subsidies from the South Korean government.

The company said it was still committed to previously announced plans to launch 15 new models between 2018 and 2023.

As part of a refinancing deal agreed in May 2018 with the state run Korea Development Bank (KDB), General Motors signed a binding agreement preventing it from selling any shares in GM Korea until 2023 and from reducing its stake to below 35% before 2028.

Topics in this article: , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto