Incheon: GM Korea Co., the South Korean unit of General Motors Co. (GM), plans to increase production at its Incheon plant by about 9 percent this year, the company's labor union said Wednesday, easing concerns over a potential withdrawal amid growing uncertainty over the United States' tariff policies.
According to Yonhap News Agency, the union stated that the company recently announced plans to allocate an additional 21,000 vehicles for production at the Bupyeong plant in Incheon, located west of Seoul. This increase represents nearly 9 percent of the plant's annual production capacity, which stands at 250,000 units.
The decision to ramp up production comes as speculation has grown about a possible exit of GM from South Korea, primarily due to Washington's 25 percent tariff on imported vehicles. GM Korea is significantly impacted by these tariffs, as approximately 85 percent of its exports are shipped to America.
The union believes that the added production volume indicates GM's intent to maintain its South Korean base as a key export hub. "The decision to boost production will likely ease some of the anxiety among our members," a union official stated.
In response to the increased production allocation, the union plans to convene a meeting with management to incorporate the updated production plan into next month's work schedules. Additionally, a separate labor-management meeting is scheduled for later this month to discuss strategies to address U.S. tariff policies and ensure stable operations.