GM Korea will shut down all of its company-operated service facilities in South Korea by February 2026, in line with folks conversant in the matter on Friday, because it braces for successful to earnings from US tariff hikes amid sluggish home gross sales.
The automaker, which exports about 85% of its domestically produced autos to the US, will cease accepting service appointments at its 9 straight managed facilities by the top of December.
Beginning subsequent yr, the Korean arm of Normal Motors Co. will switch operations to about 380 partner-run service facilities within the nation, with the closures set to be accomplished by Feb. 15.
Workers from the shuttered facilities will probably be reassigned to different roles inside GM Korea.
GM Korea has been reviewing the restructuring plan since Might to chop prices.
Home gross sales at GM Korea have slumped. From January by means of October, the corporate bought 12,979 autos, down 38.8% from a yr earlier.
With US tariffs including additional strain on exports, GM Korea is in search of to promote idel belongings, together with land and services, at its second plant in Bupyeong, Incheon. The plant has been idle since 2022.
South Korea-made vehicles will probably be topic to a 15% tariff within the US, beginning November, underneath a billateral commerce settlement finalized late final month.
The shutdown and the deliberate sale of services at its principal manufacturing base have fueled hypothesis a few potential withdrawal from South Korea.
Nevertheless, GM Korea dismissed such issues, noting it lately elevated annual output on the Incheon Bupyeong plant by about 21,000 autos in April and added 1,000 items later within the yr.
Mary Barra, chief govt of GM, additionally sought to quell hypothesis that the US automaker may exit from Korea.
Throughout a second-quarter earnings name in July, she mentioned that the corporate had no plans to reduce shipments from its Korean operations.and would proceed importing Korean-made autos regardless of US tariffs.
