Latest news with #HectorVillarreal
Yahoo
3 days ago
- Automotive
- Yahoo
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.
Korea Herald
5 days ago
- Automotive
- Korea Herald
GM selling off Korean assets, but denies exit rumors
General Motors has once again dismissed speculation that it plans to end its Korean operations despite the US automaker's decision to sell off loss-making businesses and idle assets in Korea. According to auto industry sources on Thursday, Hector Villarreal, president and managing director of GM Korea, met with the leadership of the company's labor union the previous day to explain that the selloff decision was not part of a process to exit the Korean market but rather to increase profitability. He added that it will not impact the employment status of GM Korea workers. Rumors of GM's possible withdrawal from Korea were reignited when the company sent out a notice on Wednesday to its employees announcing that it will begin discussions with stakeholders to gradually sell its nine directly operated service centers nationwide as well as underutilized assets and land at its Bupyeong plant in Incheon. 'Maximizing the value of idle assets and streamlining the operation of loss-making service centers are important to maintaining the company's sustainability,' said Villarreal. 'We still have a few years left of our vehicle production program, and these measures are important to ensuring the business efficiency of the company.' The notification mentioned that the asset sales will not impact GM Korea's planned production. The automaker said it will continue to offer customer services at 386 service centers run by its partners while employees at the directly operated service centers will be relocated to other positions to maintain their employment. GM's exit rumors surfaced early this year when US President Donald Trump said he would impose "reciprocal" tariffs on auto imports. The 25 percent auto tariffs went into effect on April 3. GM Korea sold about 500,000 vehicles last year, and approximately 420,000 of them were shipped to the US. If the levies stay, GM Korea is on pace to suffer serious damage to its businesses that heavily rely on US exports. Despite GM's continued denials of plans to withdraw, industry watchers have been warily eyeing the US brand's future business in Korea. For instance, GM Korea said it had no plans to roll out new vehicles at its Korean plants during a presentation on its current business status at its headquarters in Bupyeong last week. The company operates two manufacturing plants -- one in Bupyeong and the other in Changwon, South Gyeongsang Province. It owns another plant in Bupyeong but it has been closed since November 2022. The automaker currently makes only two models in Korea: the Chevrolet Trailblazer, a compact sport utility vehicle, and the Chevrolet Trax, a crossover SUV. 'GM has a deal with the Korean government to continue its operations in Korea through 2027,' said an auto industry official. 'GM has exited Australia, Europe and India by selling off its local manufacturing plants. They could be laying the groundwork for the same action plan in Korea.' In 2018, the Korean government signed a contract with GM for the company to continue its business in the country until the end of 2027, offering GM 810 billion won in financial support amid the US headquarters' global restructuring.
Korea Herald
6 days ago
- Automotive
- Korea Herald
GM Korea to sell non-core assets, service centers amid sluggish sales
GM Korea, the South Korean unit of General Motors, said Wednesday it will dispose of non-core assets and directly managed service centers as part of its efforts to sustain operations amid weak demand for its vehicles. In response to a rapidly evolving industry landscape and global business challenges, the company said in a press release that it will begin consultations with relevant stakeholders to secure financial sustainability in the Korean market. GM Korea plans to gradually sell all nine of its directly operated after-sales service (AS) centers. However, all employees at these centers will be reassigned to other divisions within the company, it said. "Unlocking value from surplus assets and eliminating loss-making service operations are critical to supporting ongoing sustainability," Hector Villarreal, president and managing director of GM Korea, said. The company also plans to sell idle properties and facilities within its main Bupyeong plant, located just west of Seoul. It emphasized that the planned asset sales will not affect production at the facility. "Our current vehicle programs still have many years to run, and these actions are important to ensuring GM Korea is running as efficiently as possible," he said. Despite the planned sale of the directly managed service centers, GM vehicle owners will continue to receive after-sales services through the company's 386 contracted AS centers nationwide, the company said. The move comes amid growing concerns over a potential withdrawal by GM from the South Korean market, driven by shifting US tariff policies. However, the company dismissed the possibility of such a move. "These actions are aimed at ensuring our business operates as efficiently as possible and remains an attractive destination for investment," a company official said. Speculation over GM's possible exit from South Korea has mounted following the imposition of a 25 percent tariff on imported vehicles by the United States since April, compounded by the automaker's lack of new models and sluggish sales. Detroit-based GM currently operates two plants in South Korea: one in Bupyeong and another in Changwon, 296 kilometers southeast of Seoul. The Bupyeong plant manufactures the Trailblazer sport utility vehicle (SUV), while the Changwon factory produces the Trax Crossover for both domestic sale and export. In the January–April period, GM Korea's total vehicle sales declined 9.1 percent to 154,161 units, down from 169,638 a year earlier. About 85 percent of its vehicles are shipped to the US. (Yonhap)
![[Photo News] GM Korea chief visits Changwon plant, reaffirms community support](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F05%2F16%2Fnews-p.v1.20250516.2be492503a314a8189814945b893b810_T1.jpg&w=3840&q=100)
Korea Herald
16-05-2025
- Automotive
- Korea Herald
[Photo News] GM Korea chief visits Changwon plant, reaffirms community support
GM Korea President and CEO Hector Villarreal visited the company's Changwon plant in South Gyeongsang Province to meet employees and reinforce on-site leadership, the company said Friday. During his visit on Thursday, the CEO took part in a donation ceremony hosted by GM Employee Foundation Korea, delivering 140 million won ($104,000) -- including two Chevrolet Trax Crossovers -- to support the local community. The company said the foundation has contributed a total of 540 million won in Changwon over the past five years, benefiting 81 local welfare institutions. Villarreal reaffirmed GM's commitment to community engagement and support for the Changwon region. (GM Korea)
Korea Herald
16-05-2025
- Automotive
- Korea Herald
GM Korea CEO visits Changwon plant amid US tariff-related exit concerns
The chief executive officer of GM Korea Co., the South Korean unit of General Motors Co., has visited the automaker's Changwon plant to encourage employees amid growing concerns over a potential withdrawal driven by shifting US tariff policies, the company said Friday. GM Korea CEO Hector Villarreal visited the plant, located 298 kilometers southeast of Seoul, on Thursday to meet with employees and reinforce on-site management, the company said in a press release. Speculations over GM's possible exit from South Korea have been mounting following the imposition of a 25 percent tariff on imported vehicles in the United States since April, along with the automaker's lack of new models and sluggish sales. GM Korea ships about 85 percent of its exports to America. The Detroit-based automaker operates two plants in South Korea: one in Bupyeong, just west of Seoul, and another in Changwon. The Bupyeong plant produces the Trailblazer sport utility vehicle, while the Changwon factory manufactures the Trax Crossover for both domestic sales and exports. In the January–April period, GM Korea's sales fell 9.1 percent to 154,161 vehicles, down from 169,638 units a year earlier. (Yonhap)
