Seoul: GM Korea Co., the South Korean arm of General Motors Co., announced plans to dispose of non-core assets and directly managed service centers in an effort to maintain operations amid declining vehicle sales. The company aims to adapt to the rapidly changing industry environment and global business challenges by engaging with stakeholders to ensure financial stability in the Korean market.
According to Yonhap News Agency, GM Korea intends to gradually sell all nine of its directly operated after-sales service (AS) centers. The company has assured that employees from these centers will be reassigned to other divisions within the organization. Hector Villarreal, CEO of GM Korea, stated that unlocking value from surplus assets and eliminating unprofitable service operations are essential for supporting the company's sustainability.
Additionally, GM Korea plans to sell idle properties and facilities within its main plant in Bupyeong, located just west of Seoul. The company emphasized that these asset sales will not impact production at the facility. Villarreal noted that while the current vehicle programs have several years left, these measures are crucial for ensuring operational efficiency.
Despite the planned sale of the directly managed service centers, GM Korea has confirmed that vehicle owners will continue to receive after-sales services through its network of 386 contracted AS centers nationwide. Currently, GM operates two plants in South Korea: one in Bupyeong, which manufactures the Trailblazer SUV, and another in Changwon, which produces the Trax Crossover for both domestic and export markets.
In the first four months of the year, GM Korea experienced a 9.1 percent decline in total vehicle sales, dropping to 154,161 units from 169,638 units during the same period last year. Approximately 85 percent of its vehicles are exported to the United States.