Automotive

General Motors’ South Korean Sales Slumps Last Month

General Motors’ sales in South Korea continue to dip amidst controversies. The car manufacturer is facing steep sales on their domestic sales due to its announced operation overhaul. The reconstructing is weighing GM’s sales and operations in the country.

The slumping sales are pushing uncertainties on its local operations. GM’s overall production in the country also signals a striking problem, investors are reconsidering the company’s plan. The general public is also pulling away from the problematic automaker.

General Motor continues to sink in the South Korean market after their reconstruction plans. Most recently, the automaker announced that they are going to close one of their factories. They are looking to carry on their operations with three working factories.

The company also announced that their local operation is looking to file for bankruptcy if ends don’t meet with their union. They announced that if the union didn’t cooperate with the labor cuts by April 20, the bankruptcy will be filed.

A total of 2,600 workers in General Motors South Korea have already filed for their redundancy package. Those were a total of 15% of the total workforce of the company that has applied for the reconstructing.

According to a union official, “The proposal is worrisome.” The union members also acknowledged that the brand has been falling out since they announced that they are closing their plant last February. Furthermore, they also noted that the company is to blame, not the union.

General Motors' Sale Dips last March

General Motors’ Sale Dips last March

 

General Motors’ Sales Figures

The automaker reported a total of 41,260 recorded vehicle sales last March. The recorded figures are already including the exported units. The figures were heavily unmatched from the 50,850 sales reports a year earlier.

Furthermore, the company’s local sales last March plummeted by a whopping 58%. The actual units sold were at 6,272. February’s local sales also plummeted by a massive 48% on a year-on-year period.

GM’s export has been evidently weak for the past couple of years. The degrading numbers were a result of pulling Chevy brand from Europe. The brand is the major market the South Korean plants produce, and the move has drastically damaged their figures.

Its local rivals such as the Hyundai Motor Co. and Kia Motors saw positive returns on GM’s demise. The Hyundai Motor Co. tallied an impressive 6% increase on its domestic sales, while Kia also tallied a respectable 2% increase.

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