General Motors Korea, the South Korean arm of American automaker General Motors (GM), has announced plans to sell off non-core assets in an effort to cut costs amidst challenging business conditions. The company is facing increased pressure on its exports due to new import tariffs in the US, while also grappling with stiff competition from local automakers and importers in the domestic market.
One of the key steps GM Korea is taking is the sale of its nine directly-managed aftersales service centers, with the aim of sustaining overall operations in the country. The company will redeploy the staff from these service centers to other areas within the organization. Additionally, GM Korea plans to sell off unused properties and facilities around its main Bupyeong vehicle assembly plant, without impacting its production operations.
CEO Hector Villarreal stated that unlocking value from surplus assets and discontinuing loss-making service operations are crucial for ensuring the ongoing sustainability of GM Korea’s operations. The company will engage in consultations with relevant stakeholders to secure the financial sustainability of its South Korean operations.
Despite a 9% decline in total vehicle sales in the first four months of 2025, with local sales plummeting by 41% and overseas shipments decreasing by over 8%, GM Korea reassures that vehicle production will not be affected by the asset sales. Villarreal emphasized that the current vehicle programs have a long runway ahead and that the restructuring efforts are essential for optimizing efficiency within GM Korea.
Earlier this year, CFO Paul Jacobson hinted at the possibility of relocating manufacturing operations to the US if the new import tariff hikes in the US become permanent. This strategic move would align with GM Korea’s efforts to navigate the evolving market landscape and ensure long-term viability.
As GM Korea navigates these challenges, the company remains committed to its core operations while strategically divesting non-core assets to streamline operations and bolster financial sustainability. The automotive industry continues to witness rapid changes, and GM Korea’s proactive approach underscores its commitment to adapting to the evolving market dynamics.
