It is pointed out that the US GM has failed to improve the corporate value of GM, including the timely introduction of new cars that meet the trends of Korea and global markets for many years. There are many analyzes among automobile experts that it is difficult for Korea to open its hands to the Korean government, even though Korea has been in crisis in terms of high-wage and low-efficiency structures such as high wages and product strategy.

According to the automobile industry on February 19, Korea GM announced the closure of its Gunsan plant to produce Cruise • Orlando, while GM Korea`s domestic sales reached 130,000 in 2017, accounting for 7% of its domestic market share. The new cruise line, launched in February last year to expand the market, sold only 10,540 units last year. Cruise`s full - change model was only available in nine years, and its sales volume was down 2.7 percent from its 2016 sales of older models.

An automobile industry expert said, "Cruise sales declined year-on-year despite the lack of a new car from a competitor," said the company, which pursues the No. 1 position, at a price of KRW 18.9 million (starting price) and it was a difficult pricing policy, and when consumers turned away, they lowered their prices, but they missed the timing. "Experts say that even though the failure of such a product strategy has continued, it should not be promptly injected with the people`s blood tax without thorough investigation into the causes of business failure.

Although GM Korea has made a significant contribution to GM`s global mini-and small-car development headquarters, GM has eliminated the Gunsan plant at the end of 2012 at the next-generation model production base of Cruze, the group`s flagship compact car. However, the new cruise has been criticized for failing in its pricing policy in terms of globalization.

Professor Kim Pil-soo of Daerim University stated, "Considering GM`s product power, we can achieve 13 ~ 15% market share in the Korean market, but half of the 7% is due to the lack of development of a car that meets customer needs. We need to do principle-based responses, such as demanding that we double our own efforts."

In the case of sports utility vehicle (SUV) sector, which has been the hottest boom in the Korean market, Korea GM has not been able to bring SUV models to match well with Hyundai, Kia and Renault Samsung until the last year.

After the Chevrolet brand`s European withdrawal in 2013, exports of SUV models Orlando and Captiva have plummeted, while imports and sales of mid-sized SUVs will be delayed until late this year. In the meantime, sales of Orlando last year decreased by 37.4% to 8067, and sales of Captiva decreased by 26.7% to 2067 last year. Even if GM imports the Equinox under the condition that it withdraws from the Gunsan plant, it will not be easy to boost sales by raising brand image.

Meanwhile, an automobile expert who wanted to be anonymous said, "Even if the government supports the fund, it would not be long before the GM disregards the development of a model suitable for Korean consumers and leaves unusual parts trading practices between the headquarters and Korea GM. "In the face of global automakers making massive investments to survive, investment in GM`s headquarters and fierce commodity strategy must first be established."

By Ye Jin Soo jinye@


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