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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] General Motors’ South Korean unit, GM Korea, is considering a workforce reduction in its sales and service division as the company moves to streamline operations amid declining domestic vehicle sales.
According to industry sources on Sunday, GM Korea’s management and labor union are scheduled to discuss a voluntary retirement program for employees in the company’s Vehicle Sales, Service and Marketing (VSSM) division on Monday.
The company has proposed offering up to two years’ salary as severance compensation to production and office staff in the VSSM unit responsible for vehicle sales and service operations. However, the plan’s implementation remains uncertain as opposition from the union is expected.
GM Korea has also presented a separate voluntary retirement proposal for unionized workers at its directly operated maintenance service centers, offering compensation of 10 million won ($7,500) per employee. The move signals a potential restructuring of the company’s in-house maintenance operations.
A GM Korea official said discussions with the labor union are ongoing and emphasized that no final decisions have been made.
Despite the restructuring efforts, GM Korea dismissed speculation about a possible withdrawal from the South Korean market.
The company plans to expand its brand lineup in the country, adding Buick to existing brands including Chevrolet, Cadillac and GMC. South Korea will be the only market outside North America where GM offers all four of its brands.
Late last year, GM Korea also announced plans to invest about $300 million to strengthen its production facilities in the country and expand Korea’s role as a global engineering hub.
The company aims to maximize the use of its Korean manufacturing plants, which have an annual production capacity of up to 500,000 vehicles, and further develop the country as a key export base for global markets.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
