GM to launch 10 EVs in S.Korea by 2025; no local manufacturing plans yet (updated)

LG

12/11/2021 12:47

(Adds background)
    By Heekyong Yang
    SEOUL, Nov 12 (Reuters) - General Motors Co  GM.N  will
launch 10 electric vehicles (EVs) in South Korea by 2025, but
has no plans yet to manufacture EVs in the country, Steven
Kiefer, the head of GM's international operations said on
Friday.
    The No.1 U.S. automaker, which warned last year https://www.reuters.com/article/us-gm-southkorea-labor-exclusive-idUSKBN27Y0NR
 that persistent industrial action was preventing further
investment in South Korea, builds EVs in the United States and
China. It also has plans https://www.reuters.com/business/autos-transportation/general-motors-make-1-bln-electric-auto-investment-mexico-2021-04-29
 to build them in Mexico and Canada. 
    Kiefer's visit after a Korean labour union delegation went
to Detroit in June had led to speculation in local media that he
could announce new EV production plans.
    "We are not announcing any plans yet to produce electric
vehicles in the country, so stay tuned for that," Kiefer told a
media briefing.
    GM's South Korea unit builds about 600,000 vehicles a year,
shipping many to the United States including the popular
Chevrolet Trailblazer SUV, and employs about 12,000 people. It
reported an operating loss of 309 billion won ($262 million)
last year.
    When asked about the impact of the chip shortage https://www.reuters.com/article/chips-shortage-explainer-int-idUSKBN2BN30J
 at GM's Korea plants, GM Korea Chief Executive Kaher Kazem said
production volume in the country this year was down about 25%
versus last year, but the chip shortage seemed to be easing. 
    Kiefer also said GM's partnership with South Korean battery
maker LG Energy Solution was "very bright".
    "Clearly more (battery) capacity is going to be required, so
stay tuned for some additional announcements," he said.
    GM and LG Energy Solution are building two battery cell
manufacturing plants https://www.reuters.com/article/us-gm-electric-batteries-idTRNIKBN2C31T8
 with a combined annual production capacity of about 70 gigawatt
hours in the United States, which could power about 1 million
EVs. 
    In October, GM said LG units had agreed to reimburse it for
$2 billion in estimated costs and expenses associated with a
recall of Bolt EVs https://www.reuters.com/business/lg-units-say-results-accounted-918-mln-costs-gms-bolt-recall-2021-10-12/#:~:text=SEOUL%2C%20Oct%2012%20(Reuters),recall%20of%20Bolt%20electric%20vehicles.
    ($1 = 1,177.8000 won)

 (Reporting by Heekyong Yang  Editing by Richard Pullin and Mark
Potter)
 ((Heekyong.Yang@thomsonreuters.com;))