Two-track strategy…Colorado, Traverse as imported while models manufactured in Korea as domestic
[Mediapen=Kim Sang-jun] GM Korea is awaiting approval of membership from Korea Automobile Importers & Distributors Association(KAIDA). 

Once KAIDA approves after an internal review, GM Korea will carry out its two-track strategy of dividing their car category into imported and domestic vehicles. GM Korea confirmed that there is no problem as the imported vehicles are manufactured outside Korea while sold in Korea. 

   
▲ Traverse/Source=GM Korea


Until now, GM Korea was a member of Korea Automobile Manufacturers Association(KAMA) alongside Hyundai, Kia, Renault Samsung and Ssangyong, and all their cars were considered domestic vehicles.

As GM Korea plans to newly launch Colorado pickup truck and Traverse SUV made from US, they hope these models to be recognized as imported. This is a lesson they learned from the sluggish sales and lack of competitiveness of its previous model Equinox. 

The high price of Colorado and Traverse is another reason GM Korea wants them to be classified as an imported vehicle. 

   
▲ Colorado/Source=GM Korea

In the US, the price of Colorado Z71, expected to be launched in Korea, start from $36,345 which is 42.94 million won. However, price increase is inevitable due to transportation and other expenses. With this high price, Colorado will seem less attractive compared to its competitor models.

Instead of lowering the price, GM Korea’s intention is to be categorized as imported vehicle and enjoy the benefits of premium recognition. They will also have the advantage of a wider maintenance network and lower maintenance cost than other import brands.