GM Union Faces Decision on New Car Allocation: South Korea or China?

by Oh Jooseok Posted : July 22, 2026, 18:12Updated : July 22, 2026, 18:12

The Korea General Motors (GM) labor union has confirmed that the new vehicle it is demanding for domestic allocation in labor negotiations is a next-generation small sports utility vehicle (SUV) that will succeed the current Trax crossover and Trailblazer. The production locations for this vehicle are spread across South Korea and China, making the decision on domestic allocation crucial for the sustainability of Korea GM.


According to industry sources, GM's Korea research and development organization, GM Technical Center Korea (GMTCK), began developing the new vehicle, designated '9B.2', in April. This vehicle is a small SUV similar to the current Trailblazer, with full-scale development starting this year and production targeted for 2030.


The allocation of production sites for this model remains undecided. The union has prioritized new car allocation in this year's labor negotiations, but GM headquarters has not disclosed specific production plans.


Industry analysts believe that since the 9B.2 is a next-generation project that will inherit GM's small SUV platform '9B.1', it is likely to be produced at either Korea GM or Shanghai GM. Currently, Korea GM handles exports to North America, while Shanghai GM manages domestic sales in China. In the first half of this year, Korea GM exported approximately 270,000 units of the Trax crossover and Trailblazer to North America.


However, both Korea and China GM are facing challenges in securing new production volumes, leading to inevitable internal competition. Shanghai GM has restructured its production base, closing its Shenyang plant last year due to poor sales and external uncertainties. Similarly, Korea GM has seen increased uncertainty regarding long-term production volumes after canceling a plug-in hybrid electric vehicle (PHEV) development project that was initiated in 2024.


The Korea GM union is emphasizing the domestic production allocation of the new vehicle as a key demand in this year's labor negotiations. With the main models, the Trax crossover and Trailblazer, expected to be discontinued between 2029 and 2032, securing a successor model is seen as critical for the factory's long-term competitiveness.


An industry insider stated, "GM operates a global new car allocation program, reviewing the productivity, cost competitiveness, and market conditions of each production site before making final decisions on production locations. Competition to secure successor models is inevitable."





* This article has been translated by AI.