Seoul: GM Korea Co., the South Korean unit of General Motors Co., announced plans to dispose of non-core assets and directly managed service centers in an effort to sustain operations amid declining demand for its vehicles. The company aims to navigate the challenges posed by a rapidly changing industry landscape and global business hurdles.
According to Yonhap News Agency, GM Korea revealed in a press release that it will engage in consultations with relevant stakeholders to ensure financial sustainability within the Korean market. The automaker intends to gradually sell all nine of its directly operated after-sales service (AS) centers, with the assurance that employees will be reassigned within the company. CEO Hector Villarreal emphasized the importance of unlocking value from surplus assets and eliminating loss-making operations to support ongoing sustainability.
In addition to selling service centers, GM Korea plans to divest idle properties and facilities at its main Bupyeong plant, located just west of Seoul. The company assured that these planned asset sales will not impact production at the facility, which currently manufactures the Trailblazer SUV and the Trax Crossover for domestic and export markets.
Concerns have arisen over GM's potential withdrawal from South Korea, particularly in light of shifting U.S. tariff policies. However, GM Korea dismissed such speculation, stating that the asset sales are intended to enhance operational efficiency and maintain South Korea as an attractive investment destination.
The automaker's sales have been under pressure, with a 9.1 percent decline in total vehicle sales during the January-April period, totaling 154,161 units compared to 169,638 units in the previous year. Despite the challenges, GM Korea remains committed to providing after-sales services through its network of 386 contracted AS centers nationwide, ensuring continued support for GM vehicle owners.