General Motors (GM) Chair Mary Barra reaffirmed that GM Korea is a "strategic stronghold" despite U.S. President Donald Trump's tariffs on imported cars. GM Korea exports about 90% of its total production to the United States, prompting concerns that tariffs would reduce GM's reliance on Korea. But Barra said last year GM delivered strong results thanks to lower tariffs on Korea and the success of Korea-made models, lending support to its business sites in Korea. She also said tariffs on Korea would be set at 15% and that the Autonomous Driving service "Super Cruise" business would be expanded in Korea.
Barra said during a fourth-quarter 2025 earnings conference call on the 27th (local time) that "in the fourth quarter last year, we delivered better-than-expected results thanks to strong execution and favorable policy changes such as a cut in Korea's tariff rate." GM's adjusted operating income last year was $12.7 billion (about 18.54 trillion won), comfortably meeting its annual guidance of $12 billion to $13 billion. The U.S. tariff on cars imported from Korea was lowered from 25% to 15% on Nov. last year.
Barra also said models produced in Korea contributed significantly to the results. She said, "We achieved great success with small crossover models such as the Chevrolet Trax and Buick Envista," adding, "We are very proud that the Chevrolet Trax was selected for three consecutive years as one of Car and Driver's 10Best." Both the Chevrolet Trax and Buick Envista are produced in Korea and exported to the United States. In particular, the Chevrolet Trax crossover alone exported 296,658 units last year, topping the list of export models ahead of Hyundai Motor and Kia models.
Barra's remarks are drawing more attention amid recent concerns surrounding GM Korea. Since about 90% of GM Korea's production is exported to the United States, tariffs would inevitably erode price competitiveness. On top of that, conflict with the labor union is a headache for the company. This fueled projections that GM would cut production in Korea and eventually exit the country, starting with the recent closure of company-run service centers.
However, GM's reliance on Korea is growing. GM Korea's production bottomed at 223,623 units in 2021 during the COVID-19 period, then increased to 258,260 in 2022, 464,648 in 2023 and 494,072 in 2024. Production slipped slightly to 460,826 last year, largely due to a partial strike by the union.
Recently, GM reportedly asked its business sites in Korea to "produce the full 500,000 units this year in line with full capacity." That is about 8.5% more than last year and would require running the Bupyeong and Changwon plants nonstop.
Barra also predicted that the Trump administration's auto tariff on Korea would settle at 15%. In response to a point that "there were reports that Korea's tariff could be raised back to 25%," she said, "We expect countries to obtain the necessary legal approvals to implement the transaction negotiated and agreed to in October," adding, "We are expecting (a tariff of) 15%, and if there is a period when it falls short of 15%, it will be challenging, but we will work to offset the impact."
GM Executive Vice President and Chief Financial Officer (CFO) Paul Jacobson also projected this year's tariff expense at $3 billion to $4 billion and said, "The tariff cut on Korea will partially offset (the expense)."
It is also notable that Barra singled out Korea as an expansion market for Super Cruise, a hands-free Autonomous Driving service that is one of GM's core businesses. She said, "This year, we will continue to grow the Super Cruise business in North America and expand to Korea, the Middle East and Europe."
Among GM Korea vehicles, the only model currently able to use Super Cruise is Cadillac's Escalade IQ, an electric sport-utility vehicle (SUV). A GM Korea official said, "We are preparing Super Cruise software updates for the gasoline Escalade model and GMC's large SUV Acadia as well."