GM Korea has dropped the prices on key vehicle models with an aim to address sluggish sales and increase market share in South Korea, Yonhap News Agency reported Jan. 1, citing a company statement.
The South Korean arm of General Motors Co. instituted price cuts of up to 3 million South Korean won on models under the Chevrolet brand that include the Impala sedan as well as the Trax and Equinox SUVs, the report said.
During January to November 2018, GM Korea's sales slid 12% to 420,447 units from 479,058 during the same period in 2017, according to Yonhap. The company has also struggled with heavy losses and the shutdown of a local production plant.
Meanwhile, the company reportedly plans to expand its Chevrolet lineup by bringing the Traverse SUV to the South Korean market, as part of a strategy to debut 15 models locally over the next five years.
GM Korea recently received a $750 million capital injection from state-run Korea Development Bank, which holds a 17% stake in the company, under a restructuring package developed with the South Korean government in 2018.
As of Dec. 31, 2018, US$1 was equivalent to 1,113.25 South Korean won.