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GM to invest $600 million to upgrade manufacturing facilities in Korea

Published: 25 Mar. 2026, 17:45 Updated: 25 Mar. 2026, 18:05

Hector Villarreal, president of GM Korea, delivers remarks at the media launch event for the Cadillac Escalade at IVEX Studio in Gwangmyeong, Gyeonggi, on April 16, 2025. [NEWS1]

General Motors will invest $600 million to upgrade manufacturing facilities at its operations in Korea, aiming to strengthen the country’s role as a global production hub for compact SUVs, the company said Wednesday.

GM Korea will invest an additional $300 million on top of the $300 million plan announced in December last year. Most of the total investment will be used to modernize and improve production facilities.

“Since 2018, with the support of our stakeholders, we have taken key actions to strengthen our manufacturing operations to support profitability,” said Hector Villarreal, president and CEO of GM Korea.

“The success of the Chevrolet Trax and Trailblazer, as well as the Buick Encore GX and Envista, especially in export markets, is building GM Korea’s reputation as a global small SUV center of excellence.”

GM Korea held a joint event with its labor union to mark the announcement on Wednesday. The large-scale investment is widely seen as a rebuttal to ongoing speculation that GM might withdraw from Korea.

“We have a strong foundation, and this investment is a sign of confidence in our operations,” Villarreal said.

“At the heart of this investment are the people who build our vehicles every day,” Villarreal continued. “This investment will enable us to introduce new, state-of-the-art press facilities that will help us deliver world-class small SUVs to customers around the world, while further improving safety, quality and efficiency on the shop floor.”

GM Korea has an annual production capacity of 500,000 units and plays a key role in supplying compact SUVs to global markets. The Chevrolet Trax Crossover, produced in Korea, has ranked No. 1 in Korea’s passenger car exports for three consecutive years, with 296,658 units exported last year. The Chevrolet Trailblazer has also consistently ranked among the top five export models.

Since launching a turnaround effort in 2018, GM Korea returned to profitability in 2022, posting a net profit of 210 billion won ($140 million), and has maintained profitability for three consecutive years, supported by strong exports.

“With this $600 million investment, we will continue to collaborate with GM to ensure GM Korea remains competitive in the global market and secures long-term sustainability,” said Park Sang-jin, chairman and CEO of Korea Development Bank.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM YOON-SEO [[email protected]]