Seoul: GM Korea Co., the South Korean unit of General Motors Co., announced plans to produce 500,000 vehicles this year to meet increasing overseas demand, particularly from the United States. This target marks an 8.5 percent increase from the 460,826 units produced last year amidst speculation about the automaker potentially scaling back or exiting operations in South Korea due to higher U.S. import tariffs.

According to Yonhap News Agency, GM Korea's vehicle sales had significantly dropped to 223,623 units in 2021 from 409,830 in 2019, largely due to the COVID-19 pandemic's impact. However, sales rebounded to 464,648 units in 2023 and 499,000 in 2024. The company plans to focus production on the Chevrolet Trax crossover and the Chevrolet Trailblazer compact SUV by fully utilizing its Bupyeong and Changwon plants.

A GM Korea spokesperson revealed that the parent company, GM, recently requested full-capacity operation of the two plants to achieve the 500,000-unit production goal. GM CEO Mary Barra previously noted the strong demand for models produced in South Korea and their contribution to the company's profitability.

During the "GM Korea 2026 Business Strategy Conference" in December, the company announced plans to invest US$300 million in its local operations to strengthen its production base beyond 2028, dispelling concerns about a potential reduction of GM's footprint in the country.

In a move to boost sales, GM Korea recently launched the Acadia SUV and the Canyon pickup under its GMC brand and plans to introduce the all-electric Hummer SUV in the first half of this year. The U.S. currently imposes a 15 percent tariff on South Korean-made vehicles under a bilateral trade agreement, but last month, U.S. President Donald Trump threatened to increase tariffs to 25 percent, citing delays in legislative processes related to the trade deal's implementation.