Beneath GM's Reductions in Korea is an Increasing Concern About Its Possible Withdrawal

      GM's sales of Korean-manufactured vehicles have declined by 9.1% in the initial four months of 2025.

      Union representatives are expressing concerns that the automaker might be planning to withdraw from the domestic market.

      GM asserts that it is merely “unlocking value from surplus assets” and has no intention of reducing production.

      Last year, the company produced half a million vehicles in Korea, most of which were exported to the United States.

      General Motors has announced the closure of several company-owned service centers in Korea and intends to sell various unused properties and facilities at its Bupyeong vehicle assembly plant. This announcement has sparked worries that GM could be on its way out of the local market, although the company maintains that this is not the case, despite facing a recent drop in sales.

      The automaker will be shutting down the nine after-sales service centers it operates nationwide, but the existing 386 contracted after-sales service centers will continue to function. Employees from the company-owned centers will be transferred to other divisions within the company. According to GM Korea CEO Hector Villarreal, “unlocking value from surplus assets and eliminating unprofitable service operations is essential for ensuring ongoing sustainability.”

      In addition, GM has plans regarding its main Bupyeong facility, stating that selling properties and facilities at the site will not affect production.

      Despite these reassurances, concerns remain. During a recent meeting, labor union representatives challenged Villarreal about these changes, citing that “the sale of company-run service centers suggests that you’re exiting the domestic market.” Villarreal assured them that this is not the case.

      “GM Korea is the only local automaker without a roadmap for transitioning to future vehicles, which jeopardizes long-term job security,” stated GM Korea union leader Ahn Kyu-baek in an interview with Korea Joongang Daily. “Announcing asset sales without a future strategy feels like dropping a bomb.”

      These developments come even though GM experienced a successful 2024 in Korea, although sales have decreased in the first four months of this year. In 2024, GM manufactured 499,559 vehicles in Korea, of which 418,792 were exported to the United States. This year, total sales have dropped by 9.1% to 154,141 units, compared to 169,638 during the same period last year.