General Motors (NYSE:GM) has announced plans to invest $7.3 billion in its facilities in South Korea, where the company already has a significant presence. Roughly four in ten Chevrolet vehicles sold worldwide are manufactured in South Korea, Bloomberg reports.
The infusion — equal to about 8 trillion won — is a significant increase in investment in the country. For the last decade, GM has invested roughly 1 trillion won, or about $920,000 each year. The company says it plans to double the size of its design center there, making it the third largest after the U.S. and Brazil.
After a brief stint as the world’s largest carmaker, Toyota (NYSE:TM) is back on top. The overhauled facilities are intended to ramp up competition in Asia, which is now one of the largest automotive markets in the world. Although GM has posted profits for the past three consecutive years, substantial losses in Europe have prodded the company to look for more opportunity in other markets.
“GM Korea will continue to play a major role in our global growth plans,” Tim Lee, GM international operations head, said in the statement…