SEOUL, October 17 (AJP) - GM Korea’s plan to sell its directly operated service centers has ignited a labor dispute and stirred speculation about the automaker’s long-term commitment to South Korea.
The company, a subsidiary of U.S.-based General Motors, said the decision stems from weak domestic sales and chronic financial losses. In May, GM Korea announced plans to sell nine service centers and idle land at its Bupyeong plant in Incheon — a move it has not reversed despite union opposition.
Industry observers say the decision could erode consumer trust and worsen perceptions of GM’s brand reliability in South Korea, particularly as its service centers have played a vital role in handling recalls and warranty issues for Chevrolet and Cadillac vehicles.
The move has also revived rumors that GM may be preparing to scale back or eventually exit the South Korean market, a fear that has periodically resurfaced since the company shut down its Gunsan plant in 2018 and restructured its operations. Analysts note that reducing its direct service network could further weaken GM Korea’s capacity to maintain customer loyalty and manage quality control locally.
Union leaders said they will request a three-way meeting with management and government officials in Incheon on Oct. 28 to discuss the closures.
“The company is focusing solely on efficiency, ignoring workers’ livelihoods,” said Ahn Kyu-baek, head of the GM Korea union.
GM Korea, however, insists it has no plans to withdraw. The company said it will maintain after-sales services through approximately 300 authorized partner repair shops nationwide.
“The task force will serve as a communication channel to ease employee concerns during the sale process,” a company spokesperson said. “We aim to find reasonable solutions through cooperation with the union.”
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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