Workers assemble Torres EVX SUVs at KG Mobility's production line in Pyeongtaek, Gyeonggi Province, Tuesday. Courtesy of KG Mobility

PYEONGTAEK, Gyeonggi Province — KG Mobility's much-touted new assembly line that can produce both internal combustion and electric vehicles shows the direction the company is pursuing on the production side, as both remain popular at the current stage of the industry's paradigm shift.

In December, the carmaker completed the integration of the formerly assembly lines 2 and 3 at its Pyeongtaek factory and launched hybrid assembly line 3 for both gasoline and electric vehicles with monocoque chassis and body-on-frame cars.

The integrated production line — located in the industrial area of the city, about 65 kilometers south of Seoul — is now manufacturing KG Mobility's flagship SUVs, such as the Torres EVX and the Rexton.

The carmaker spent 50 billion won ($36.5 million) for the renovation of the facility.

During a recent press visit to the renovated production line, diverse vehicles from KG Mboility's SUV lineup, including the two aforementioned models, were lined up for assembly on a conveyor belt.

However, only a few mechanics and workers were seen checking and assembling parts of the KG vehicles, as automated robots and assembly machines have replaced tasks previously done by human labor.

The hybrid production system with humans and robots maximizes operational efficiency for the carmaker while increasing its profitability at a time when it has been only a few years since the company achieved a turnaround.

The Torres EVX is a particularly strategic model for the carmaker, which aims to establish its identity as an SUV powerhouse in the upcoming EV era. The firm's two assembly lines are both capable of building the model.

"We mainly produce the Torres EVX at our assembly line 1, and line 3 also backs up the production for the vehicle," Park Jang-ho, head of production and executive vice president at KG Mobility, told reporters Tuesday. "After we started operation of the renovated assembly line 3, we have been able to maximize production efficiency and respond flexibly to customers' demands."

The carmaker has introduced a set of the latest equipment for the assembly line, such as a battery mounting automation system, for more efficient production of its Torres EVX.

An employee conducts quality testing on a vehicle at KG Mobility's manufacturing facility in Pyeongtaek, Gyeonggi Province, Tuesday. Courtesy of KG Mobility

The firm's sales are on the gradual rise after KG Group acquired the formerly cash-strapped SsangYong Motor in 2022, the company said. The rebranded carmaker chalked up 116,000 vehicle sales here and abroad in 2023, up 1.9 percent from the previous year.

KG Mobility's earnings are also on track for a stable recovery after suffering years of deficits.

The company generated an operating profit of 15.1 billion in the first quarter of this year, up 61.1 percent from the previous year, on export growth driven by robust sales of its strategic Torres EVX SUV.

Its net profit came in at 53.9 billion won, up 226.1 percent during the same period.

Of particular note was its export growth. The firm's export between January and March soared by 39.2 percent from a year earlier, the largest quarterly figure in a decade since the first quarter of 2014.

The executive added a swift decision-making process from top management enabled the carmaker to normalize financial soundness, after KG Group acquired it.

"We had a tough time making decisions quickly while we were owned by foreign capital," Park said. "This is not the case anymore."

He added, "We conduct weekly meetings with top management and carry out tasks immediately after we make any certain decisions during the meetings."