In this file photo taken May 15, 2025, and provided by GM Korea Co., the company’s Chief Executive Officer (CEO) Hector Villarreal speaks with employees at its Changwon plant, located 296 kilometers southeast of Seoul. (Yonhap)
SEOUL, May 28 (Korea Bizwire) — GM Korea Co., the South Korean unit of General Motors Co., said Wednesday it will dispose of non-core assets and directly managed service centers as part of its efforts to sustain operations amid weak demand for its vehicles.
In response to a rapidly evolving industry landscape and global business challenges, the company said in a press release that it will begin consultations with relevant stakeholders to secure financial sustainability in the Korean market.
GM Korea plans to gradually sell all nine of its directly operated after-sales service (AS) centers. However, all employees at these centers will be reassigned to other divisions within the company, it said.
“Unlocking value from surplus assets and eliminating loss-making service operations are critical to supporting ongoing sustainability,” GM Korea Chief Executive Officer (CEO) Hector Villarreal said.
The company also plans to sell idle properties and facilities within its main Bupyeong plant, located just west of Seoul. It emphasized that the planned asset sales will not affect production at the facility.
“Our current vehicle programs still have many years to run, and these actions are important to ensuring GM Korea is running as efficiently as possible,” he said.
Despite the planned sale of the directly managed service centers, GM vehicle owners will continue to receive after-sales services through the company’s 386 contracted AS centers nationwide, the company said.
Detroit-based GM currently operates two plants in South Korea: one in Bupyeong and another in Changwon, 296 kilometers southeast of Seoul.
The Bupyeong plant manufactures the Trailblazer sport utility vehicle (SUV), while the Changwon factory produces the Trax Crossover for both domestic sale and export.
In the January–April period, GM Korea’s total vehicle sales declined 9.1 percent to 154,161 units, down from 169,638 a year earlier. About 85 percent of its vehicles are shipped to the United States.
(Yonhap)
