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4mo ago

GM Korea CEO Reassures Workforce as U.S. Tariffs Stoke Exit Speculation

Hector Villarreal's visit to the Changwon plant highlights leadership efforts to address concerns over the automaker's future in South Korea.

In this photo taken May 15, 2025, and provided by GM Korea Co., the company's Chief Executive Officer Hector Villarreal talks to employees at the company's Changwon plant, 298 km southeast of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

Overview

  • GM Korea CEO Hector Villarreal visited the Changwon plant on May 15, 2025, to meet with employees and reinforce leadership presence.
  • The visit comes as speculation grows over GM Korea's possible withdrawal from South Korea, driven by U.S. tariffs and declining sales.
  • The U.S. imposed a 25% tariff on imported vehicles in April 2025, heavily impacting GM Korea, which sends 85% of its exports to the U.S.
  • GM Korea's sales dropped 9.1% year-on-year in the January–April 2025 period, reflecting challenges from a lack of new models and market pressures.
  • The company operates two plants in South Korea, producing the Trailblazer SUV and Trax Crossover, but no formal decision on a South Korea exit has been announced.