General Motors' South Korean unit, GM Korea, is considering closing its Changwon plant and shifting production to Bupyeong after new U.S. tariffs raised concerns over its competitiveness, industry sources said.
The review follows Washington’s move to impose a 25% tariff on all imported vehicles starting April 3, threatening GM Korea’s business model. The unit exports most of its vehicles to the U.S.
Internal discussions have intensified, sources said, with the leading scenario involving shutting Changwon and consolidating output at Bupyeong if the tariffs remain for more than six months.
GM entered South Korea in 2002 by acquiring Daewoo Motor’s passenger car division, operating plants in Bupyeong, Gunsan and Changwon. It shut the Gunsan plant in 2018 during a global restructuring and sold the site to supplier Myoungshin.
Bupyeong now produces the Chevrolet Trailblazer small SUV and export models Buick Encore GX and Buick Envista. Changwon manufactures the Chevrolet Trax Crossover.
“Bupyeong handles a wider range of models, so it makes sense to consolidate there,” an industry official said. Some Changwon workers have already been reassigned to Bupyeong, he added.
In 2024, GM Korea built 499,559 vehicles at its two plants, exporting 84% — or 418,782 units — to the U.S. The Trailblazer and Trax Crossover, popular in the U.S., are made exclusively in South Korea.
The blanket tariff announced by the Trump administration applies by product category, not country, meaning Korean-made GM vehicles face the full levy.
GM Korea has sought to quell speculation about a pullout. The company’s union said GM pledged to add 21,000 units to domestic output. GM Korea President Hector Villarreal also said at a recent event that “Korea remains an important market.”
Still, analysts warn that prolonged tariffs would hurt GM Korea’s profitability. While a complete exit is seen as unlikely for now, major restructuring is widely expected.
S&P Global Mobility said U.S. automakers including GM, Ford and Stellantis could more easily shift production back home if needed. If GM Korea’s results deteriorate, it could cut production and move some output to the United States, analysts said.
