The GM Korea labor union pressed management to "clarify plans beyond 2028," calling for new-model programs that can keep production going for at least 10 years and for an expansion of domestic sales. The year 2028 is the deadline GM promised the Korea Development Bank to maintain its business sites in Korea. The union plans to visit the United States this month to ask headquarters directly for new models.
Ahn Gyu-baek, head of the GM Korea union, held a press briefing on the 17th at GM Korea's Bupyeong plant in Incheon and said, "Although management recently announced a new $300 million (about 440 billion won) investment, to completely dispel exit rumors and guarantee a stable future, there must be a new-model project that can replace the current production lineup."
GM Korea said last month it would invest $300 million to modernize its domestic plants. That is in addition to the $300 million released in Dec. last year. It will also pay its first-ever interim dividends. The industry estimates the payout will reach 4 trillion won. GM headquarters, which holds 76.96% equity, as well as the Korea Development Bank, which owns 17.02%, will receive dividends.
Ahn said, "It is not that dividends themselves are wrong, but they do not fit our situation." GM Korea's operating profit last year was about 490 billion won, down sharply from 1.3572 trillion won a year earlier. Ahn said, "If they do not provide clear answers such as a long-term plan, the current dividends can only be seen as behind-the-scenes groundwork for an exit."
He also made clear that new-model plans must be pursued over the long term, for at least 10 years. Ahn said, "The Gunsan plant also launched Chevrolet's next-generation Cruze (D2LC) in 2016, but it closed in 2018," adding, "This is not excessive concern by the union; given the consistent (closure) pattern GM has shown, short-term plans are hard to trust."
The union believes that even if GM does not exit in 2028, GM Korea will reach the end of its life around 2030 without new models. Ahn said, "The mass production timing for minor change models (product-enhancement models that are not full redesigns) of current models is Jan. 2027," adding, "Bupyeong's production deadline is 2030, and Changwon's is 2032." He added, "This plan, too, can change at any time due to a sharp drop in sales or various risks."
Along with allocating new models, the union argues that domestic demand must be boosted. Ahn said, "Looking at Australia, India, Europe, and Russia, the company first dents domestic demand, then restructures the plants to turn a profit, pays dividends, and then restructures and exits," noting that they have been continuously requesting management to release models such as the Buick "Envista" for the domestic market.
He said, "There was a time when we had a full lineup from minicars to large vehicles, but now there are only two small SUV models," emphasizing, "For the company to talk about stimulating domestic demand in this state is a lie or a lack of will."
He also said reliance on the North American market should be reduced. Ahn said, "Currently, if we produce 100 units, 96 go to North America, and it was the company's own doing that it faced tariff risks more severely than any other company last year," adding, "If the Korea Development Bank negotiates with GM again, it should focus on expanding domestic demand and reducing reliance on North America." In this process, he suggested a collaboration utilizing KG Mobility's export network with GM providing technology.
The union is exploring a plan to visit the United States this month to meet with GM headquarters executives. Ahn said, "It is not yet confirmed, but we are pushing for a meeting," adding, "We intend to strongly press for follow-up projects to the models currently in production and come back."