GM South Korean unit to spend $7.3 billion to expand
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SEOUL (Bloomberg) -- General Motors Co.'s South Korean unit plans to invest 8 trillion won ($7.3 billion) over five years to expand in a country where it made four of every 10 Chevrolets sold worldwide last year.
GM Korea Co. will boost manufacturing facilities and double the size of its design center this year to the company’s third-largest after U.S. and Brazil, the company said in an e-mailed statement.
The automaker is increasing investment at the unit from 1 trillion won a year as it starts building new models to compete with a resurgent Toyota Motor Corp. The maker of the Prius regained the top spot in global sales from GM last year.
“GM Korea will continue to play a major role in our global growth plans,” Tim Lee, GM international operations head, said in the statement.
GM reported a third straight year of profit in 2012, led by sales in the U.S. and China, while losses in Europe more than doubled. The company is counting on Asia for growth outside the U.S. as it expects European demand will fall further this year.
GM vehicles produced in South Korea are exported to 150 markets on six continents, the company said in October.
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