GM Korea's multi-brand strategy falls short on localization

General Motors (GM) Korea’s decision to bring to market its first Buick model — imported entirely from China — is putting its multi-brand strategy at odds with its commitment to local production, experts and industry officials said Tuesday. Last week, the carmaker unveiled Buick, positioning the premium brand as a key pillar of the strategy to offer consumers a wider range of products, along with its other brands, such as GMC, Cadillac and Chevrolet. But since Buick’s first model, the Electra E7 plug-in hybrid electric vehicle (PHEV), will be imported from China, the latest decision has also renewed questions about GM Korea’s long-term commitment to domestic production. In March, GM Korea announced a $600 million (806 billion won) investment plan to expand its production infrastructure. At a media briefing, GM Korea CEO Hector Villarreal highlighted the benefits of operating multiple brands and providing customers with greater choice. But when asked whether Buick or other new models could eventually be produced in Korea, Villarreal did not offer a specific commitment. Kim Pil-so