GM Korea to sell non-core assets
GM Korea Company, the South Korean subsidiary of US automaker General Motors (GM), revealed it plans to sell non-core assets in an effort to reduce costs as business conditions continue to get tougher. The company's exports are under increased pressure following the introduction of new import tariffs in the US, while in the local market the company is struggling with rising competition from local automakers and importers alike.
GM Korea confirmed it plans to sell off its nine directly-managed aftersales service centres, as part of its efforts to 'sustain' its overall operations in the country amid weakening demand, with the staff to be redeployed to other operations within the company. It also plans to sell unused properties and facilities around its main Bupyeong vehicle assembly plant, without affecting its production operations.
GM Korea said it plans to begin consultations with relevant stakeholders to 'secure the financial sustainability' of its South Korean operations. The company's CEO, Hector Villarreal, said in a statement: 'Unlocking value from surplus assets and eliminating loss-making service operations are critical to supporting ongoing sustainability.'
GM Korea's total vehicle sales in the first four months of 2025 declined by over 9% to 154,161 units, with local sales plunging by 41% to 5,434 units while shipments to overseas markets declined by over 8% to 148,727 units. Around 80% of the company's output is exported to the US.
Mr Villareal emphasized that vehicle production will not be affected by the cuts, pointing out that the company's 'current vehicle programmes still have many years to run' and that the current restructuring is 'important to ensuring GM Korea is running as efficiently as possible."
Earlier this year, GM Korea's CFO, Paul Jacobson, said the company may consider relocating its manufacturing operations to the US if the new US import tariff hikes become permanent.
"GM Korea to sell non-core assets" was originally created and published by Just Auto, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
South Korea faces high-stakes election; fears over China, North Korea and US ties shape voter concerns
Early South Korean voters reportedly turned out in record numbers this week as the nation awaits the June 3 presidential election in what has been described as a pivotal race amid ongoing threats posed by China and recent rocky relations with the U.S. due to President Donald Trump's tariffs. The leader of the progressive Democratic Party of South Korea, Lee Jae-myung, is reported to be leading the race as the frontrunner, but he has raised some eyebrows after he vowed to take a "pragmatic" approach to geopolitics, chiefly by easing previously hawkish positions on China and lessening dependence on the U.S. "The alliance with the U.S. is the foundation of South Korea's diplomacy," Lee said during a debate earlier this month, Bloomberg reported. Kim Jong Un Left Fuming After North Korea's New Destroyer Damaged In Failed Launch Lee said the U.S.-South Korea-Japan partnership should be expanded, but he also said Seoul can't be "unilaterally bound" to relations with Washington, particularly when it comes to U.S. geopolitical rivalries. "We should not neglect ties with China or Russia. We need to manage them appropriately, and there's no need to have an unnecessarily hostile approach like now," Lee also said during the debate, the South China Morning Post reported. Read On The Fox News App Former California GOP Congresswoman Michelle Steel, who was born in South Korea, explained that China's "bullying" behavior in the region leaves much for the global community to be concerned about. "China [poses] the biggest threat, and they already told the whole world that they're going to take over Taiwan," she told Fox News Digital. "When they take over, where are they going to go [to] next? South Korea or Japan? The Philippines? "China has been always fighting to expand." Foreign policy has taken center stage in the presidential race after conservative former President Yoon Suk Yeol threw the nation into political chaos after his December 2024 impeachment. Yoon was ardently aligned with the U.S. when it came to opposing Chinese aggression in the Yellow Sea and East China Sea, where Beijing has been accused of expanding, militarizing and blocking freedom of navigation in contested territorial zones. Lee's chief challenger, Kim Moon-soo of the conservative People Power Party (PPP), a former labor minister under Yoon, pushed back on the democratic challenger's position when it comes to China and the U.S. But Lee has rejected the idea he is not prioritizing the U.S. alliance and reportedly said during this month's debate, "There's no need to worry. The South Korea-U.S. alliance is important and should continue to grow and strengthen." North Korea Launches Short-range Ballistic Missiles Into Sea, South Korea Says Though he did caution that certain steps taken by the Trump administration, including the 25% tariffs announced earlier this year and the potential withdrawal of troops has "eroded" the relationship. "If the U.S. continues this way — eroding its soft power and the trust of other nations — it won't be sustainable. At some point, brakes will be applied," Lee said. "Until then, endurance is key." Steel argued the "South Korean people understand the importance of a strong relationship with the United States." "Whatever the outcome of the election, South Korean leaders should embrace President Trump and look to make an incredible trade deal that will benefit everyone," she added. But Lee has not convinced all who are weary of his view on U.S. relations, including David Eunkoo Kim, founder and president of the Truth Forum, a conservative youth organization founded at Seoul National University. "This election is widely seen as a pivotal moment for South Korea because the stakes — both domestically and geopolitically — are extraordinarily high," Kim said. "Throughout his political career, (Lee) has consistently aligned himself with both pro-North Korean and pro-Chinese agendas. He has been implicated in sending funds to North Korea in violation of U.N. sanctions, and his deference to China has been nothing short of submissive," Kim said. Kim was referring to Lee's indictment for an illegal cash transfer scheme to North Korea, though Lee denies the accusations and has argued they are politically motivated. During this month's debate, Lee's opponents claimed Lee is also a "North Korea risk" as concerns about Pyongyang's military movements continue to escalate, Radio Free Asia reported. Lee maintains he wants to ease tensions with North Korea by engaging in peaceful diplomacy. But David Eunkoo Kim told Fox News Digital Lee's legal troubles are another geopolitical vulnerability. "With multiple criminal investigations looming, he has every incentive to cling to power at all costs — even if that means aligning South Korea more closely with Beijing," he said. "And this concern is not theoretical. "China is already aggressively asserting influence in the region."Original article source: South Korea faces high-stakes election; fears over China, North Korea and US ties shape voter concerns
CNBC
12 hours ago
- CNBC
South Korea exports fall as tariffs hit U.S., China shipments
South Korea's exports fell in May for the first time in four months, as shipments to the United States and China dropped on global trade conflict triggered by U.S. President Donald Trump's sweeping tariffs. Exports from Asia's fourth-largest economy, an early bellwether for global trade, declined 1.3% from the same month last year to $57.27 billion, government data showed on Sunday. "Declines in exports to both the United States and China, the two biggest markets, suggest U.S. tariff measures are having an impact on the global economy as well as our exports," said South Korean Industry and Trade Minister Ahn Duk-geun. The first decline since January followed rises as strong chip sales had offset downward pressure from Trump's tariff threats. The May decline, however, was milder than the 2.7% fall forecast in a Reuters poll of economists. On a working-day adjusted basis, exports in fact rose 1.0%. China and the United States agreed in mid-May to a 90-day truce, significantly unwinding their tariffs on each other, after months of back-and-forth retaliatory measures, but Trump on Friday accused Beijing of violating the agreement and threatened to take tougher action. He also said he would double global tariffs on steel and aluminum to 50%. Trump's "reciprocal tariffs", including 25% duties on South Korea, are on a 90-day pause for negotiations. South Korea's May shipments to the United States fell 8.1% and those to China fell 8.4%. Exports to the European Union rose 4.0%, those to Southeast Asian countries fell 1.3%, while those to Taiwan surged 49.6%. Exports of semiconductors jumped 21.2%, thanks to robust demand for advanced memory chips, but car exports fell 4.4% due to U.S. tariffs and production at Hyundai Motor's new factory in the U.S. state of Georgia, according to the ministry. South Korea's imports fell 5.3% to $50.33 billion, bringing the monthly trade balance to a surplus of $6.94 billion, the biggest since June 2024.
Boston Globe
21 hours ago
- Boston Globe
North Korea gets a weapons bonanza from Russia
Advertisement In return, Moscow has revived a Cold War-era treaty of mutual defense and cooperation with Pyongyang, supplying North Korea not only with fuel and food, but also with materials and technologies to modernize its military, according to South Korean officials and analysts. They warn that the growing expansion of military cooperation between Russia and North Korea, if left unchecked, could threaten a delicate military balance around the Korean Peninsula. The disintegration of the old Soviet bloc, and the subsequent collapse of North Korea's economy, created a yawning gap between North and South Korea in their conventional weapons abilities. To counter that, North Korea in recent decades dedicated its limited resources to developing nuclear warheads and their delivery missiles. Still, the North's conventional weaponry remained many years behind that of South Korea and the United States, which keeps 28,500 troops in the South. Advertisement Russia's war against Ukraine has brought Kim a military bonanza. It gave North Korea opportunities to test its weapons and troops and to gain valuable insights into modern warfare. Its conventional weapons industry has entered a renaissance, thanks to Russia's insatiable demand for its artillery shells and missiles and the military technology flowing the other way, South Korean analysts said. Kim now has greater ability to destabilize the East Asia region and more leverage should he sit down again with President Donald Trump or China's leader, Xi Jinping, they said. 'North Korea appears to be entering a strategic golden age,' said Yang Uk, an expert on the North Korean military at the Asan Institute for Policy Studies in Seoul. The alliance has benefited President Vladimir Putin of Russia, too. For months, Russian officials concealed the fact that North Korean troops were taking part in efforts to push Ukrainians out of the Kursk region, in western Russia. It was only at the end of April, when most of the Ukrainian-occupied area had been liberated, that the head of the Russian General Staff said during a public meeting with Putin that North Korean troops 'provided significant assistance' to the Russian army there. Perhaps more valuably, North Korea sent millions of artillery rounds, as well as many missiles, to Russia. South Korean officials said that North Korea was also cooperating with Russia to build drones for both nations. Russia's resurgence in the war has given Putin a stronger hand in any potential peace negotiations with Ukraine, and with Trump. The courtship between Kim and Putin deepened when they met in Russia's Far East in September 2023. Kim was shown around a Russian space-launch station, an aircraft manufacturing factory, and air force and naval bases, compiling what South Korean analysts called a 'bucket list' of Russian technologies he wanted to get his hands on. Advertisement Last June, Kim invited Putin to Pyongyang, the North's capital, to sign an alliance treaty. Soon, North Korean troops began streaming into Russia, numbering up to 15,000 in all, according to South Korean intelligence officials North Korean troops took part in recapturing two villages in the Kursk region, said Dmitri Kuznets, an analyst with the news outlet Meduza, which was outlawed by the Kremlin and operates from Latvia. But the true extent of the troops' contributions has been debated. Valery Shiryaev, an independent Russian military analyst, said in a post on Telegram, a popular messaging app, that the participation of Koreans in real battles was Kim's idea, so that he could test his army. 'All of them are getting an incredible experience now and will come back as real veterans,' Shiryaev said. 'There are no such people in the South Korean army, which undoubtedly fills Kim Jong Un with pride.' Analysts in South Korea and other Western powers have been tallying Kim's hardware gains. They have monitored aircraft and ships carrying what appeared to be Russian military technologies to North Korea. Kim's prioritizing of drones alone would help significantly narrow the gap with South Korea in conventional weapons, analysts said. In April, Kim and his daughter, Kim Ju Ae, widely believed to be his heir, attended the launching of the North's first naval destroyer, the Choe Hyon. He later watched the ship test-fire various missiles. One of them was called a supersonic cruise missile by North Korea, and it resembled the nuclear-capable Russian cruise missile 3M22 Zircon, said Hong Min, a military expert at the Korea Institute for National Unification in Seoul. Advertisement While launching the destroyer, Kim Jong Un reconfirmed that he was also building a nuclear-powered submarine. Multiple UN Security Council resolutions ban arms trading with North Korea. But military cooperation with Russia 'has proved a perfect route for the North to evade sanctions and overcome its technological limits,' said a report from the Institute for National Security Strategy in Seoul. There remains doubt over how much sensitive technology Russia is willing to share with North Korea. North Korea has repeatedly failed to launch military spy satellites. And to build a nuclear-powered submarine, the country would need a small nuclear reactor. Such a submarine, which would vastly improve its ability to cross the Pacific and launch a nuclear attack on the US mainland, was so politically risky that Moscow would be 'very, very cautious,' said Doo Jin-ho, a senior analyst at the Korea Institute for Defense Analyses in Seoul. But the mere threat it could happen gives Kim more leverage, and North Korean state media has shown part of what it said was a nuclear-powered submarine under construction. 'It's the most dangerous weapon North Korea has unveiled so far,' said Hong, of the Korea Institute for National Unification. This article originally appeared in
