GM Korea to shut one production line to focus on small cars

General Motors Co. plans to shut down a production line in South Korea as the US automaking giant aims to focus on manufacturing small cars in the country.

GM Korea Co. said on Tuesday it is scheduled to stop operations of the No. 2 line at its main plant in Bupyeong, Incheon, just west of Seoul, on Nov. 26 as GM’s South Korean unit discontinued the production of the Chevy Malibu mid-sized family sedan and the Chevy Trax compact sport utility vehicle. The plant has two production lines.

The shutdown is not a measure to reduce business in South Korea as the company aims to produce 500,000 vehicles a year there including the Chevy Trailblazer small SUV and a new crossover utility vehicle (CUV). It rolled out 223,623 units in 2021 and 354,800 units in 2020.

TRAILBLAZER, NEW CUV

GM Korea plans to invest 200 billion won ($147.5 million) in the No. 1 production line at the Bupyeong plant, which will continue operations to manufacture the Trailblazer. The new CUV will be produced at another one of its plants in Changwon, about 300 kilometers southeast of Seoul.

GM Korea is set to transfer 700 out of its total 1,200 employees at the No. 2 line to Changwon and the remainder to the No. 1 line.

The No. 2 line’s runs have been declining since the 2008-09 global financial crisis despite a temporary rebound in the Malibu's popularity.

The company has yet to decide on how to utilize the line without any plan to produce new models there, GM Korea said.

GM may consider making electric vehicles in South Korea, the country manager said last month, but it remains unclear whether the automaker will produce eco-friendly models in the nation, given the US government policy that favors EVs made in North America, according to industry sources.

Write to Han-Shin Park at phs@hankyung.com
Jongwoo Cheon edited this article.