GM Continues to Scale Back
General Motors. Arguably one of the biggest automotive manufacturers in the world, but this car giant is falling down a slippery slope. With sales slowly falling and export markets being scarce, GM is looking ready to scale back it’s South Korean business.
GM is considering a reconstruction of its South Korean business. Combining different elements from their Australia and India game plans, but that doesn’t seem like it will be enough. Sales in Korea are down by over 25% since last year, and show no signs of rising back. GM recently sold its European business in attempts to help scale back operations, but before they sold they cut costs in a lot of areas. There is talks that they will follow that same strategy with GM South Korea. The problem is that all this downsizing still costs money, and that is exactly what GM is trying not to spend. However, you have to spend money to make money, and GM is fine with spending if it means long term savings.
Overall, GM is trying to climb out of a hole that they don’t want to be in. With markets disappearing and sales going down there’s no telling what will be next for GM.