GM Korea Union Calls Service Center Closures 'Exit Preparation' as Company Defends Move

GM Korea held a nationwide conference for its partner service and sales network representatives at Incheon Samsan World Gymnasium in Bupyeong-gu, Incheon, on January 9, the company announced Friday.

The event comes as the automaker confirmed plans to close all nine company-operated service centers next year, with the conference aimed at emphasizing there will be no gaps in service and sales coverage.

Approximately 400 people attended the event, including Hector Villarreal, President of GM Korea, Gustavo Colossi, Vice President of Sales, Service and Marketing at GM Korea, and representatives from the nationwide partner service and sales network.

"GM Korea will continue to provide the highest level of customer service together with our nationwide partner service center network, as we have been doing," Villarreal said, signaling a shift toward a partner-centered service operation system.

"Based on close partnerships with the field, we will continue to provide fast and accurate service and do our best to secure customer trust," Villarreal added. "We will expand communication and support with service centers to create a future where everyone grows together."

Colossi shared next year's sales plans and service integration strategy at the event. He also presented specific implementation measures including network strengthening, customer care improvement, warranty and technical support system enhancement, and parts supply stability.

"Cooperation with the service network is key to customer satisfaction," Colossi said. "We will do our best to enhance network competitiveness and improve customer experience through action plans including increased vehicle intake, strengthened customer care, and expanded technical support."

GM Korea explained that approximately 380 partner service network locations currently handle 92% of total customer service volume. The nine company-operated service centers have been handling only 8% of the workload.

GM Korea will completely end company-operated service center operations in February next year. The company said it will work closely with the network council to ensure stable handling of the volume previously managed by company-operated centers.

However, the union is opposing the closure plan, arguing that these restructuring moves are preparation for GM's withdrawal from Korea.

GM Korea is also reviewing outsourcing of its Sejong Parts Logistics Center, a parts distribution hub. Woojin Logistics, the subcontractor that has been operating the Sejong facility, filed for closure and issued termination notices to approximately 120 employees.

Five labor and civic groups including the Korean Metal Workers' Union GM Korea Branch, the Korean Confederation of Trade Unions Incheon Chapter, and Incheon Regional Solidarity launched the "GM Korea Incheon Regional Response Committee" on January 9 to jointly respond to GM Korea's restructuring plans.

Meanwhile, GM Korea's domestic sales are expected to fall short of 20,000 units this year. Last month, the company recorded 974 domestic sales, marking the first time monthly sales fell below 1,000 units since GM Korea was established in 2002.

Nearly 400,000 vehicles produced annually at Korean plants are mostly exported to the United States and other markets, effectively turning the operation into an export base. Industry observers expect GM Korea will continue efficiency-driven measures as its domestic business significantly shrinks.