GM Korea’s Trax Crossover / Korea Instances file
Basic Motors (GM) Korea’s imprecise market positioning is believed to be a key issue fueling persistent rumors in regards to the automaker’s potential exit from the native market.
The corporate is presently specializing in increasing gross sales of luxurious autos from its premium Cadillac model by releasing a number of electrical autos (EVs) for the previous few years, diverging from the methods utilized by the agency’s flagship Chevrolet model.
GM Korea’s gross sales rely closely on Chevrolet’s Trax Crossover and Trailblazer SUVs. The carmaker bought a complete of 43,799 domestically manufactured autos in November, however greater than 99 % of the gross sales got here from simply these two fashions, in keeping with knowledge from the carmaker. Solely about 2 % of November’s gross sales have been in Korea, with most autos exported to the US.
No Chevrolet EVs are presently out there on the market in Korea, however GM Korea’s latest transfer to broaden Cadillac’s EV lineup raises questions over the agency’s technique right here.
Cadillac launched its Lyriq electrical SUV right here final 12 months, and not too long ago launched its flagship Escalade IQ SUV, that includes GM’s much-touted Tremendous Cruise hands-free driving system.
GM Korea CEO Hector Villarreal, proper, smiles through the launch occasion for Cadillac’s Escalade IQ electrical SUV in Seoul, Nov. 19. Yonhap
Chevrolet’s Equinox EV obtained gross sales certification from the Ministry of Local weather, Vitality and Atmosphere final 12 months, however its debut schedule has been delayed indefinitely.
GM Korea nonetheless maintains that it isn’t presently contemplating leaving the Korean market, however its technique of specializing in high-end manufacturers retains elevating doubts over the carmaker’s dedication.
The corporate can also be set to shut its 9 straight operated service facilities in February subsequent 12 months. It’s the first time that one of many nation’s so-called prime 5 carmakers — Hyundai Motor, Kia, KG Mobility, Renault Korea and GM Korea — has determined to cease working directly-managed restore amenities. The carmaker defined that tons of of affiliated service facilities nationwide will take over, however the transfer has rekindled rumors of attainable withdrawal from the nation.
Trade officers stated GM Korea will proceed to be stricken by exit rumors until it expands its eco-friendly lineup, together with hybrids and EVs.
“The dearth of latest autos from Chevrolet is taken into account the largest trigger behind the rumor,” an auto business official stated.
“Even when Chevrolet doesn’t launch any new eco-friendly automobiles, Cadillac’s gross sales quantity may be very restricted right here, in contrast with that of Chevrolet. GM Korea has to diversify its auto lineup for Chevrolet to rebuild belief with Korean prospects and keep away from exit rumors.”
