As GM Korea decided to shut down its company-run service centers nationwide starting in Feb. next year, attention is focusing on the damage that 1.5 million GM Korea owners could suffer. The union says maintenance and repairs in demanding high-tech areas and for large vehicles will become more difficult, and consumer burdens will increase for warranty work. Some counter that the roughly 380 partner service centers can fill the gap left by the company-run centers, but trust in the continued presence of the GM Korea brand is inevitably taking a hit.
According to the auto industry on the 20th, GM Korea will close all nine company-run service centers nationwide as of Feb. 15 next year. It will accept repair requests only through the end of this year, and will transfer subsequent maintenance and repair work to 383 partner service centers nationwide. Although the union is protesting that "company-run service centers are the core of GM Korea's quality service and the foundation of customer trust," the consensus is that there is little chance GM Korea will withdraw its plan.
As a result, anxiety is rising among consumers who own GM Korea brand vehicles, including Chevrolet. According to Kaizuyu Data Research Institute, as of the end of Oct., a total of 1,513,080 vehicles of these brands are currently registered. Chevrolet accounts for the most with 1,168,195, and discontinued GM Korea models such as the Matiz, Damas and Labo number as many as 343,388. GMC (1,497 units), which GM Korea imports, is also within the scope of impact.
So what harm might consumers face if the company-run service centers disappear? A union official said, "Company-run service centers have technical expertise and expensive equipment not found at general service centers, so after-sales service (AS) in high-tech areas such as electronic control systems is hard to handle without company-run service centers."
The union also argues that consumers could be harmed in warranty repairs and recalls if company-run service centers are eliminated. A union official said, "Even now, because warranty repairs are not good for revenue, partner service centers ask customers to bring their cars to company-run service centers," adding, "If partner service centers take on deficit work such as warranty repairs and recalls, there is a possibility they will pass the expense on to consumers."
The union also claims that it is impossible to work on engines and transmissions for large vehicles at Baro Service Centers, which number 210 of the 383 locations. GM Korea's Chevrolet partner service centers are divided into Designated Service Centers, which are Class 1–2 repair shops, and Baro Service Centers, which are Class 3 shops that can handle only small-scale maintenance. The union also explained that parts sourcing and storage previously handled by company-run service centers could face disruptions.
GM Korea, on the other hand, says consumers will not feel any change even if all company-run service centers close. A GM Korea official said, "There are more than 100 Designated Service Centers that provide the same scale and identical services as company-run centers, so they can cover areas that currently have the nine company-run service centers," adding, "Technology, equipment and training will also be carried out the same as at the company-run centers."
Internally, GM Korea is said to have concluded that, considering imported car brands with 700,000–800,000 registered vehicles operate around 60–70 service centers nationwide, roughly 380 GM Korea partner service centers are sufficient for about 1.5 million vehicles.
Among experts, there is also a view that service centers will not be insufficient. Kim Pil-soo, a professor in the Department of Future Automotive at Daelim University, said, "There were not many consumers who went out of their way to visit company-run service centers in the first place, so there is no need to worry much," adding, "As GM Korea's policy is to allocate more roles to larger partner service centers, the maintenance and repair demand can be fully absorbed even without company-run service centers."
In fact, other mid-sized automakers similar to GM Korea also operate mainly through partner service centers rather than company-run ones. Renault Korea has seven company-run service centers, and KG Mobility has only two. An official at a Class 1 private repair shop in Gangseo District, Seoul, said, "Company-run service centers look only at a specific brand and have equipment tailored to that brand, so there are cases where tricky work is sent to the company-run centers," but added, "However, unless it's an imported car, there is rarely a need to go to company-run service centers, and some private shops are as well-equipped as company-run centers, so there is no big problem even without them."
However, a decline in consumer trust in the brand due to the closure of company-run service centers seems inevitable. In fact, on various Chevrolet online communities, there are growing concerns that the closure of company-run service centers could lead to GM Korea's withdrawal. The previous day, the union also launched an emergency committee to block the closures, saying, "From the closure of the Gunsan plant to the closure of the Bupyeong Plant 2, GM's moves are heading toward the dismantling of GM Korea's manufacturing and service base and withdrawal."