GM Korea (image: Yonhap)
SEOUL, July 24 (Korea Bizwire) — General Motors will continue importing several vehicle models from South Korea despite profit headwinds from tariffs imposed during former U.S. President Donald Trump’s administration, the company said Tuesday.
In the company’s second-quarter earnings call, GM CEO Mary Barra emphasized the strong performance of the automaker’s Korean assembly plants, calling them “very, very efficient.” As a result, she confirmed that GM would continue exporting South Korea–built models such as the Chevrolet Trax, Trailblazer, and Buick Envista and Encore GX to the U.S., according to a report by Autoweek.
Barra, along with CFO Paul Jacobson, explained that GM’s relatively modest use of dealer incentives allowed the company to offset some of the tariff-related costs on low- to mid-priced imports through higher-margin profits from its premium models.
The comments reaffirm GM’s strategy to maintain production of certain cost-effective vehicles in South Korea, even as U.S. tariffs weigh on profitability. GM operates facilities in Bupyeong, Changwon, and Boryeong.
The company reported a second-quarter net income of $1.895 billion, down 35.4% from the same period last year, reflecting the financial strain from ongoing trade and tariff pressures.
Kevin Lee (kevinlee@koreabizwire.com)
