Photo = Yonhap news

 

[Alpha Biz= Kim Jisun] GM Korea has decided not to produce any new vehicles at its domestic plants, fueling renewed concerns over the company’s long-rumored withdrawal from South Korea. The automaker has also signaled plans to sell off company-owned service centers and idle factory assets.



According to industry sources on May 28, GM Korea has confirmed that it will not be adding any new models—including internal combustion engine vehicles, plug-in hybrids (PHEVs), or electric vehicles (EVs)—to its domestic production lineup. Among South Korea’s major automakers, GM Korea is now the only one without a roadmap for producing eco-friendly vehicles.

 

 

This marks a sharp reversal from the company’s 2022 pledge—made during its 20th anniversary in Korea—to launch 10 EV models domestically by the end of 2025. Since then, however, it has not released any new models and officially scrapped its PHEV development plan last year.



The company is also downsizing its after-sales network. On the same day, GM Korea announced plans to sell all nine of its directly operated service centers nationwide. The company stated it is “beginning discussions with stakeholders on measures to ensure long-term financial sustainability amid rapid industry and global business changes.” It emphasized that customer support would continue through its 386 partner service centers and that employment at the company-owned centers would be maintained.



In addition, GM Korea intends to sell idle assets and underutilized facilities and land at its Incheon Bupyeong plant. The automaker currently operates two domestic plants—Bupyeong and Changwon—but only maintains production lines for two small SUVs: the Trailblazer and the Trax. The rest of the facilities may now be subject to disposal.



These actions have reignited concerns that GM may be preparing to exit Korea altogether. In 2018, GM Korea avoided closure with financial support from the South Korean government under the condition that it would maintain operations at least through 2027. With that deadline now just two years away, industry watchers are questioning the company’s long-term commitment to the Korean market.

 

 

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]