With plans to produce a new lineup of compact and sub-compact crossovers by the end of 2022, GM Korea is investing $750 million in new facilities for its Changwon factory such as a car body shop and assembly line to accommodate the production of new products.
According to GM Korea CEO, Kaher Kazem, this push will allow the carmaker to be adequately prepared to tackle on production of next-generation global models. Kazem went on to say during a statement that the investment is a testament to the Changwon plant’s position as a competitive production site within General Motors. What’s more, the regional CEO specified the large-scale investment will help boost the regional economy by creating new supplier jobs.
The push comes after the GM Korea plant survived a viability test following the shutdown of the GM Gunsan factory. The move comes after a massive GM Korea restructuring, during which GM headquarters pledged new capital after a contribution from a second stakeholder as well as the Korea Development Bank.
The new paint shop will be comprised of a 67,000 square meter floor area and will able to carry out the painting of 60 vehicles per hour, or up to 280,000 units per year. According to Kazem, the new paint shop will incorporate cutting-edge technology through applied automation all while being environmentally friendly.
The government of the city of Changwon is projecting that GM Korea’s latest investment will trigger $1.5 billion worth of production, creating no less than 12,000 jobs once the plant commences operations. We still don’t know which vehicles the plant and the new paint shop will build, or for which market they’ll be destined, but there will be a new crop of small, Korean-sourced crossovers coming from GM in the near future.
The Changwon plant currently builds the following models and products:
Vehicles:
- Chevrolet Spark (plus export variants – Holden Spark, Opel Karl and Vauxhall Viva)
- Daewoo/Chevrolet Damas
- Daewoo/Chevrolet Labo
Propulsion Systems:
- Various engines
- Various transmissions
The vehicles that the plant will likely produce include the new Chevrolet Trailblazer (the crossover, not the SUV) and all-new Buick Encore GX for the North American market.
Subscribe to GM Authority for more GM Korea news and ongoing GM news coverage.
Source: Pulse News
Comments
I always have a problem with these automotive factory tooling cost. $750 million? All I can think of is the time the plant or line is out of production the accountants throw in the lost revenue of new car sales with no production during the retooling or new built. Without a doubt it is expensive to built but with this kind of money you can buy six Airbus 321neo’s and paint a few cars.
I can’t help but think … what if maybe that money had been spent on factories within the United States … what if both management and the labor force come together to build those models here in the United States. Now … think of it this way the car business isn’t just cars … it’s tires, fabrics, paint, glass, leathers, oils an greases, metals of each an every type, it’s multiple industries coming together to build a car. It used to be done here, and exported around the world, can’t it be that way again? We have people looking for work here, and many immigrants flowing in … who too need work. GM, and Ford, Fiat/Chrysler you are guilty too of foreign car import with your name slapped on the front an back. Our labor force can make things happen, give them the opportunity.