GM Korea (Image courtesy of Yonhap)
SEOUL, Oct. 12 (Korea Bizwire) — South Korea’s GM operations are feeling the brunt of a prolonged U.S. tariff reduction delay, as sales of its flagship export models — the Trax Crossover and Trailblazer — plunge sharply, rekindling concerns over the automaker’s future in the country.
According to industry data released Saturday, GM Korea sold 23,723 vehicles at home and abroad in September, down 39.1 percent from a year earlier. Exports, which make up roughly 95 percent of total sales, dropped 39.2 percent to 22,492 units.
The downturn was led by steep declines in shipments of the Trax Crossover and Trailblazer, two models that together account for the bulk of GM Korea’s overseas sales. Sales of the Trax fell 35.3 percent year-on-year to 15,365 units, while the Trailblazer plunged 46.3 percent to 7,127 units — the steepest drops since partial strikes disrupted production in mid-2024.
The two vehicles have long been pillars of Korea’s automotive exports. In 2024, the Trax ranked first among all export models with 295,099 units shipped, while the Trailblazer placed fourth at 178,066. The previous year, both models topped export rankings as well.
But industry analysts say the delayed implementation of U.S. tariff reductions — leaving Korean-made vehicles roughly 10 percentage points more expensive than competitors — has begun to erode their competitiveness in GM’s key North American market.
This photo provided by GM Korea shows the Trax Crossover. (Yonhap)
The Trax Crossover, developed specifically for U.S. consumers as an affordable crossover SUV, had been hailed as the model that revived GM Korea after its 2023 launch. For over a year, it sold between 20,000 and 30,000 units monthly. But sales have now fallen below 20,000 since July, marking a critical slowdown.
With exports accounting for more than 90 percent of GM Korea’s business, the ongoing slump has heightened anxiety across the domestic auto industry over potential production cuts — and renewed speculation about GM’s long-term commitment to its Korean operations.
“The longer the 15 percent tariff reduction is delayed, the heavier the burden becomes for Korean automakers,” said Kim Pil-soo, an automotive engineering professor at Daelim University. “For GM Korea, which sends nine out of every ten vehicles to the U.S., these are troubling signs.”
Kevin Lee (kevinlee@koreabizwire.com)
