Under General Motors' Korea operations (GM Korea) business normalization plan, the combined cumulative production of the small sport utility vehicles (SUVs) Trax Crossover and Trailblazer (including derivative models) has reached 2 million units. Based on 2020, when the Trailblazer was first produced, it took a little over six years, and based on 2018, when GM Korea's business normalization plan was drawn up, it took about eight years.
After the government and Korea Development Bank injected 810 billion won in public funds to save GM Korea, which had been in a "flickering light before the wind" state, the two new models secured from GM headquarters were the Trax Crossover and the Trailblazer. Developed and produced in Korea, these two models generated revenue worldwide, making Korea GM's global production hub for small SUVs. GM, which also unveiled plans for an additional $600 million (880 billion won) investment last year and this year combined, is reviewing vehicles to expand its domestic market.
Asif Khatri, vice president overseeing production for GM's international operations, held a media roundtable at the Changwon plant training center on the 28th and said, "The Changwon plant is General Motors' global benchmark facility," adding, "The indicator of '2 million units in cumulative production' means GM Korea has established itself as a global production base for small SUV products." He continued, "(The 2 million cumulative units) signify the importance of Korea-made vehicles in GM's global portfolio," and said, "We will continue to improve safety infrastructure, employee working conditions, and operational efficiency."
The Changwon plant was a dedicated light commercial vehicle production facility that built Daewoo Motor's Damas and Labo in 1991. The mini cars Matiz and Spark were also produced here until the early 2020s. The Changwon plant transformed into a hub for small SUVs in 2022. This came as the new paint shop within the Changwon plant and the equipment conversion in the press, body, and assembly shops—initiated after GM released a 900 billion won investment in 2019—were completed. GM Korea's Changwon plant began full-scale mass production of the Trax Crossover in early 2023.
Within a year of its launch, the Trax Crossover became the best-selling small SUV in the United States and continued that record last year. In the United States alone, sales last year exceeded 260,000 units, and the Trax Crossover, which holds a 27% market share, is on track to reach 1 million units in cumulative production this year. Including the Trailblazer, GM's share of the U.S. small SUV market was tallied at 43%. More than 4 out of 10 people who bought a small SUV in the United States purchased a vehicle made at GM Korea's plant.
GM Korea has set a policy to invest $300 million each in products and production facilities. Khatri said, "The $600 million investment is a commitment to enhance safety, quality, and efficiency," adding, "Through factory risk assessments, we are determining which equipment to upgrade and which to repair. If there are areas to further strengthen, we will put in the effort." Part of the investment will also be allocated to improving the performance of the Trax Crossover and Trailblazer, with a facelift and other updates anticipated.
GM Korea's biggest weakness is considered to be domestic sales. While the Trax Crossover and Trailblazer sold 447,216 units overseas last year, domestic sales were only 15,000 units. GM Korea said it brought four GM brands, including Cadillac and GMC, into the country last year to expand the domestic market, and added that it is developing a new electric vehicle. Once development is complete, it is expected to become a new weapon alongside the new Trax Crossover and Trailblazer.
Khatri said, "The new energy vehicle (NEV) team is assessing what opportunities there may be in Korea," adding, "We are continuously reviewing ways to maximize the value of the $600 million investment." He added, "We are not satisfied with the current situation. We are not complacent, and we will do our best."
However, for the time being, the plan is to focus first on small SUVs. Lee Dong-woo, GM Korea vice president in charge of domestic production, said, "The Changwon plant already has a sufficient foundation to produce hybrid electric vehicles (HEVs) and electric vehicles," adding, "Even though the Changwon plant is running nonstop, we still cannot meet U.S. demand." It is interpreted as a plan to focus on profitability while developing next-generation models. Yoon Myung-ok, GM Korea executive director in charge of domestic marketing, said, "Small SUV production comes before next-generation models," adding, "For next-generation models, we will move nimbly according to market changes."