General Motors (GM) Korea has decided not to produce the Impala sedan in South Korea, according to a report by Yonhap News Agency. The automaker will continue to import the vehicle for the South Korean market and cited cost efficiency and other advantages over potential local production.
Significance: GM launched the Impala in South Korea in September 2015, achieving sales of 6,671 units during the year, according to IHS Automotive data. The vehicle competes in the D-car segment and is imported as a completely built-up (CBU) unit from GM's Detroit-Hamtramck plant in the United States. GM Korea's labour union demanded that the company establish local production for the Impala, along with several other Chevrolet models, during the 2015 wage negotiations. However, after a comprehensive research on the feasibility of localising the Impala, the automaker has decided to continue importing the sedan. IHS forecasts that Impala sales in South Korea will reach 14,489 units in 2016 but also that this total could be a peak, so clearly not enough to justify local production. GM Korea has high ambitions for 2016, targeting a 20% year-on-year (y/y) rise in sales to 190,000 units in South Korea, up from 158,000 last year. In March, GM Korea reported 27.6% growth in its domestic sales to 16,868 units.
