GM Signals Restructuring Move for S. Korean Unit

General Motors Co. confirms it is pondering moves to revive—or perhaps exit—its money-losing operations in South Korea.

CEO Mary Barra told analysts yesterday that GM Korea’s “challenging” cost structure must be fixed “to have a viable business” in the country. Analysts have speculated for months that GM, which operates four under-utilized assembly plants in Korea, could abandon its operations there.

The Korean unit was a GM global hub for low-cost small-car production earlier in the decade. But the company noted nearly two years ago that the country’s labor costs have climbed about 50% over five years, even as production volume shrank.

Barra emphasizes that no decision has been made about what actions GM may take. But she says the company has been bluntly emphasizing in discussions with all stakeholders in Korea, including its militant labor union, that financial conditions there must improve.

Over the past five years GM has sold, shut down or restructured its operations in Australia, Europe, India, Indonesia, Russia, South Africa, Thailand and Venezuela. Barra told analysts that GM also is contemplating similar moves in other unspecified countries.​​​​​