GM Korea bets big on improving Changwon production plant

Industry

Published: 19 Oct. 2022, 18:45

GM Korea bets big on improving Changwon production plant

GM Korea CEO Roberto Rempel speaks during a press conference for its 20th anniversary held at its Changwon plant in South Gyeongsang on Wednesday. [GM KOREA]

CHANGWON, South Gyeongsang — Six-hundred and five massive robotic arms move systematically at GM Korea’s Changwon plant on Wednesday afternoon, working to make at least one vehicle per minute.

The Changwon plant is where GM Korea is betting big, which the automaker believes will be a breakthrough to help it make a turnaround after eight consecutive years of net loss.

The Korean unit of General Motors invested 1.1 trillion won ($770 million) across its two plants in Korea to double its production capacity. In the Changwon plant alone, the automaker invested 900 billion won to build a new 3-story painting facility and upgrade its stamping and assembly facilities.

“With GM Korea’s annual capacity now standing at 500,000, we anticipate that we can go profitably in 2023,” GM Korea CEO Roberto Rempel said during a press conference for its 20th anniversary, held in Changwon Wednesday afternoon.

Rempel’s confidence comes as GM Korea is expected to introduce two new CUVs in the first half of next year. The vehicles will be fully manufactured in the Changwon plant.

“I am sure our new CUVs will follow the Chevrolet Trailblazer's footsteps, becoming another global success,” Rempel said.

Rempel also emphasized GM Korea’s contribution to Korea’s automotive industry and his passion for making the Changwon plant a key production base for GM Korea.

“Over the past 20 years, we have invested more than 9 trillion won in Korea in vehicle programs and facilities and produced 24 million units of vehicles, with exports to 140 countries,” said Rempel.

“GM Korea is at a crucial turning point now,” he added. “And the Changwon plant will be our crucial production base for CUVs.”

GM Korea's Changwon plant [GM KOREA]

The automaker produces Trailblazer SUVs at its Bupyeong plant in Incheon. GM exported a total of 380,000 Trailblazer SUVs that were made in the Bupyeong plant to the global market so far, the second largest country in terms of the number of units.

Rempel also announced that GM Korea will introduce 10 electric vehicles (EVs) in Korea by the end of 2050. GM sells vehicles under four brands globally: Chevrolet, Cadillac, Buick and GMC. Chevrolet and Cadillac models are currently available in Korea.

But when asked about the possibility of manufacturing EVs in Korea, he said he has “no plan" for that.

“GM Korea will have to fully operate our plants to manufacture CUVs, so we have no space for EVs,” Rempel said. “We currently have no plans of making EVs here in Korea, but we may in the future.”

On Wednesday, a group of people held a picket protest in front of GM Korea’s Changwon plant, demanding the automaker rehire the irregular workers that it fired in 2019.

Since the company’s establishment in 2002, the Changwon plant has been in charge of manufacturing GM Korea’s small-size vehicles like Martiz and Spark and its commercial vehicles like Damas. But with the company constantly struggling to turn a profit, GM Korea laid off some 600 irregular workers who were working in the Changwon plant at the time.

When asked about his plan for recruitment of the irregular workers, Rempel said the company will hire some temporary workers in the future when they can afford it.

GM Korea has been reporting net losses for eight consecutive years since 2014. It reported 175.2 billion won of net loss last year, 296.81 billion won in 2020 and 320.20 billion won in 2019.

BY SARAH CHEA [chea.sarah@joongang.co.kr]