GM Korea will shut down all of its company-operated service centers in South Korea by February 2026, according to people familiar with the matter on Friday, as it braces for a hit to profit margins from US tariff hikes amid sluggish domestic sales.
The automaker, which exports about 85% of its locally produced vehicles to the US, will stop accepting service appointments at its nine directly managed centers by the end of December.
Starting next year, the Korean arm of General Motors Co. will transfer operations to about 380 partner-run service centers in the country, with the closures set to be completed by Feb. 15.
Employees from the shuttered centers will be reassigned to other roles within GM Korea.
GM Korea has been reviewing the restructuring plan since May to cut costs.
Domestic sales at GM Korea have slumped. From January through October, the company sold 12,979 vehicles, down 38.8% from a year earlier.
With US tariffs adding further pressure on exports, GM Korea is seeking to sell idel assets, including land and facilities, at its second plant in Bupyeong, Incheon. The plant has been idle since 2022.
South Korea-made cars will be subject to a 15% tariff in the US, starting November, under a billateral trade agreement finalized late last month.
The shutdown and the planned sale of facilities at its main production base have fueled speculation about a possible withdrawal from South Korea.
However, GM Korea dismissed such concerns, noting it recently increased annual output at the Incheon Bupyeong plant by about 21,000 vehicles in April and added 1,000 units later in the year.
Mary Barra, chief executive of GM, also sought to quell speculation that the US automaker could exit from Korea.
During a second-quarter earnings call in July, she said that the company had no plans to scale back shipments from its Korean operations.and would continue importing Korean-made vehicles despite US tariffs.
