GM could abandon its Korean subsidiary
- Since the production peak (960,000 units) reached in 2007, just before the financial crisis of 2008-2009, the Korean subsidiary of the American group General Motors (ex-Daewoo) has steadily accumulated difficulties, particularly with the end of the Chevrolet brand in Europe. Most Chevrolet models marketed in Europe were made in Korea. This shortfall amounts to 200,000 units a year.
- The halt of GM Korea's CKD exports and production to Russia and the former republics of the Soviet Union, to Iran and even to Southeast Asia represent another shortfall of 200,000 units per year.
- The sale of the Opel / Vauxhall brands to PSA in 2017 directly threatens the manufacture in Korea of Opel Mokka and Opel Karl, which remain the latest models produced by GM Korea for the European market. Already, the Opel Antara was stopped in 2016, giving way to the Opel Grandland made in France. This loss of earnings due to the sale of Opel / Vauxhall will amount to 150,000 units per year, while the volume of production is already only 500,000 units in 2017, the lowest figure recorded since 2005. The only salvation for GM Korea is the Korean car market. But even in this market its sales are down-only 125,000 units in 2017, a market share of 7% compared to 8% in 2012 and 9% in 2007. The future of GM Korea therefore seems even more uncertain today than two years ago.
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