GM rolls out new Cadillac Escalade amid Korea exit rumors

GM Korea on Wednesday unveiled the all-new Cadillac Escalade, the latest model from the US carmaker, amid persistent rumors of its possible withdrawal from the Korean market, which has been hit hard by US tariffs.

“We do not intend to respond to rumors about the company’s exit from Korea,” said Gustavo Colossi, vice president of the sales, service and marketing division at GM Korea, during a press conference held in Gwangmyeong, Gyeonggi Province. “We plan to move forward with our sales strategies in Korea and continue launching new models in the coming weeks and months, introducing fresh GM offerings to the market.”

Colossi’s remarks come amid ongoing speculation that the US automaker may scale back operations in Korea due to the 25 percent automotive tariffs imposed by President Donald Trump. GM currently operates manufacturing plants in Bupyeong (Incheon) and Changwon (South Gyeongsang Province), with 84.8 percent of production exported to the US last year.

Yoon Myong-ok, chief marketing officer at GM Korea, confirmed media reports that the Bupyeong plant was recently allocated an additional 21,000 units of production volume. The increase includes models already produced at the site — namely, the Trailblazer SUV, Buick Encore GX SUV and Buick Envista Crossover. With this addition, the plant’s projected production for 2025 is expected to rise from 208,000 to approximately 230,000 units.

“The small increase in production is seen as damage control, as it does not include any of GM’s flagship electric vehicle models,” said an industry source who wished to remain anonymous. “However, the company remains a key player in exporting compact SUVs to the US, which is still significant. Whether this strategic position will hold depends on upcoming negotiations between the Korean government and the Trump administration.”

In the first quarter of 2024, GM captured around 40 percent of the US compact SUV market share, largely driven by the popularity of the Chevrolet Trax and Trailblazer, according to Road Test Media.

While introducing the face-lifted version of the Escalade, the Cadillac brand’s flagship full-size SUV, GM Korea CEO Hector Villarreal noted that Cadillac considers Korea a key market. He highlighted the brand’s plans to launch upcoming vehicles and offer a distinctive customer experience.

The Escalade SUV comes in two variants -- the standard model and an extended wheelbase model -- priced at 166 million won ($116,000) and 188 million won, respectively. The vehicle with a longer chassis provides the “second-row executive seat package,” which features electric position adjustment and heating, ventilation and massage seats, as well as surround sound system headrests and 2.6-inch displays.

Stressing that it has already secured a number of preorders from customers, the company said the bold, full-size Escalade, enhanced with high-tech upgrades, stands unrivaled in the luxury SUV segment in Korea.