GM Korea Company, the South Korean subsidiary of US automaker General Motors (GM), reportedly plans to shut down its in-house aftermarket service operations in the country by early next year. Local media reports say the step is part of a broader cost-cutting programme.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
GM Korea is understood to have decided to stop accepting service appointments at its nine remaining directly managed service centres from December, with the transfer of all its service activities to its independent service partners expected to be completed by February of next year. The company has around 380 partner-run service centres across South Korea, which will continue to operate as normal.
GM Korea reported a 39% plunge in domestic sales to 12,979 units in the first ten months of 2025, with the company struggling to compete in this market with domestic automakers Hyundai Motor and Kia Corporation, as well as a growing number of import brands.
GM Korea’s exports have also been affected by the imposition of import tariffs in the US. The company produced almost 500,000 vehicles last year, with over 80% of output understood to have been exported to the US. Exports declined by 6% to 353,032 vehicles in the first ten months of 2025, with around 85% of these said to have been shipped to the US.
GM Korea’s manufacturing operations are seen as vulnerable to closure if exports to the US lose their competitiveness. The company has been re-evaluating its operations in South Korea since the second quarter of 2025, as it braced for the impact of the US import duties on its earnings. Some local analysts are speculating whether the decision to close down its in-house service network is the beginning of GM’s exit strategy from South Korea.
While the US government recently agreed to lower its duties on South Korean imports from the 25% introduced in April to 15%, the import tariff remains a significant additional cost affecting the competitiveness of GM Korea’s exports to the US – one that was not there last year.
