by GM closes service centers in Korea
General Motors has announced the closure of several company-owned service centers in South Korea and the sale of part of unused assets at its Bupyeong plant. This has raised concerns among labor unions, who fear the company is preparing to exit the local market. However, GM assures this is not the case, despite declining sales.
The automaker will retain 386 franchised service centers but close nine company-owned ones. Employees from these centers will be reassigned to other positions. GM Korea CEO Hector Villarreal stated:
“Freeing up capital from excess assets and discontinuing unprofitable service operations is critically important to maintaining the company’s stability”
Union reactions
Unions have expressed concern over the lack of a clear transition plan for electric vehicle production. GM Korea union leader Ahn Kyu-baek remarked:
“Selling assets without a future plan is like detonating a bomb”
In 2024, GM produced nearly 500,000 vehicles in Korea, of which 418,000 were exported to the U.S. However, in the first four months of 2025, sales fell by 9.1% compared to the same period last year.
Despite current difficulties, the company emphasizes that selling part of its assets will not affect production volumes. The situation at GM Korea reflects broader trends in the automotive industry, where manufacturers are adapting to shifting demand and the transition to new technologies.
