GM Korea to launch Trax, Cadillac EV; likely turn to profit this year

GM Korea Co. expects to turn to profit this year after years of losses as the South Korean subsidiary of the US auto giant plans to bring six new and partially revamped models, including the Cadillac LYRIQ electric SVU, to the Asian country.

While unveiling this year’s business plan at a press conference on Monday, GM Korea Chief Executive Roberto Rempel said the General Motors Co. unit is ready to turn around after amassing about 3 trillion won ($2.4 billion) in losses since 2014.

GM’s Trax crossover, unveiled in the US last year, will be churning out at GM Korea’s Changwon plant in the first quarter for exports globally. The model will also be sold in Korea.

The company also plans to bring the new Cadillac LYRIQ electric SUV, powered by the Ultium battery platform, to the Korean market by the end of this year.

GM has taken “deliberate steps” to improve the sustainability of its Korean business by introducing new products and improving customer-focused business strategies, Shilpan Amin, GM’s senior vice president and president of its overseas division, said in a video message at the media briefing in Seoul.

TO LAUNCH 10 EVs IN KOREA BY 2025

The Detroit carmaker plans to launch 10 electric vehicles in Korea by 2025 to turn Korea into a major production base for exports across the globe.

GM has three plants in Korea – two production lines in Bupyeong, west of Seoul, one in Changwon, South Gyeongsang Province, and another in Boryeong, South Chungcheong Province.

GM Korea, which produced 260,000 cars at the three plants last year, plans to expand its production volume to 500,000 units this year.

Most GM models are sold under the Chevrolet brand in Korea.

GM plans to launch the GMC brand in Korea this year, with the Sierra Denali luxury pickup among the first.

For all of 2022, GM Korea sold 264,875 vehicles, up 12% from the previous year.

Last October, GM Korea’s country manager said the company may produce EVs in Korea, but it remains unclear, given the US government policy that favors EVs made in North America.

At Monday’s press conference, Rempel said GM Korea won’t likely manufacture EVs at least over the next two years.

However, the Korean subsidiary is ready to turn its local production facilities into EV production lines when the “right time” comes, he said.

Write to Han-Shin Park at phs@hankyung.com
In-Soo Nam edited this article.