GM Korea is drawing the line against rumors of a withdrawal after General Motors' (GM) business sites in Korea announced plans to sell some domestic assets. GM Korea explained that it is selling assets to enhance sustainability amid a sharp decline in domestic sales, but there is strong backlash from the members.
Hector Bejar, president of GM Korea, mentioned during the first negotiation for the 2025 wage and collective agreement on the 29th that the company will not withdraw from the Korean market and stated that no employees will lose their jobs. However, GM Korea is reviewing relocation plans for employees working at nine directly operated service centers nationwide. These service centers are those that GM Korea announced it would sequentially sell on the 28th. Internally, it is being discussed to place employees from those centers into production and quality management departments at the Incheon Bupyeong plant and the Changwon plant.
GM Korea announced that it will sell domestic assets for management efficiency. The company's market share in Korea was around 10% in 2017, but now it has decreased to 1-2%. Given the reduction in domestic sales, it has become difficult to maintain the service sector and sales network.
At GM Korea's Changwon and Bupyeong plants, the Trax crossover and Trailblazer, compact to mid-size sport utility vehicles (SUVs), are being produced for export to the United States. According to the Korea Automobile Mobility Association (KAMA), out of the 499,559 vehicles GM Korea produced and sold last year, 418,792 units were exported to the U.S., accounting for 83.8%. The Bupyeong plant made decisions to increase production by 31,000 units during two instances in April and May.
A GM Korea official said, "GM is moving its production from Canada and Mexico to the U.S., but only increased it in Korea. They believe it will be hard to make B-segment (small SUVs and hatchbacks) in the U.S. They have to deal with some losses from tariffs as fixed costs, but considering the investment in new facilities in the U.S., they determined that it is better to maintain the Korean plant." He added, "There's no guarantee that tariffs from the Trump administration will last long." GM Korea is establishing a production system of 500,000 units combined at the two plants.
However, the backlash from members, including labor unions, is significant, making it a challenge for GM Korea to persuade them. It is reported that GM Korea did not consult with the union when deciding to sell idle assets at the service centers and Bupyeong plant. The union is said to have strongly demanded a future plan from GM Korea, mentioning "job threats" during the first negotiation of the wage and collective agreement the previous day.
GM Korea is continuously reviewing the introduction of new vehicles. Last year, it considered importing GMC pickup trucks or Chevrolet vehicles from the U.S., but determined that producing vehicles for the domestic market instead of U.S. export volume would be less profitable. GM Korea stated, "We will find ways to expand our lineup for the domestic market."