Seoul, April 16 || GM Korea, the South Korean unit of General Motors, plans to increase production at its Incheon plant by about 9 per cent this year, the company's labour union said on Wednesday, easing concerns over a potential withdrawal amid growing uncertainty over the United States' tariff policies.
According to the union, the company recently said it would allocate an additional 21,000 vehicles to the plant in Bupyeong, Incheon, west of Seoul, for production this year.
The increase amounts to nearly 9 per cent of the plant's annual production capacity of 250,000 units, reports news agency.
The move comes as speculation has grown about a possible exit of GM from South Korea in response to Washington's 25 per cent tariff on imported vehicles.
GM Korea ships about 85 per cent of its exports to America.
According to the union, the added production volume signals that GM intends to maintain the South Korean base as a key export hub.