March 02, 2018 11:59
GM Korea suffered a W900 billion loss last year, while cumulative losses incurred over the last four years total almost W3 trillion (US$1=W1,084).
The carmaker, which had demanded a sweeping bailout from the Korean government, suffered a net loss of W900 billion and an operating loss of W800 billion as of late 2017, according to preliminary figures submitted to the National Assembly by the Financial Services Commission.
Its revenue last year stood at only W10.7 trillion, which was the lowest level seen since the global financial crisis (W9.5 trillion in 2009).
The main culprit behind the losses was a sharp drop in exports to Europe after GM pulled out of the region. Its exports to Europe fell from 137,750 vehicles in 2012 to just 205 last year. Domestic sales also fell 26.6 percent from 180,275 in 2016 to 132,377 last year.
GM Korea started taking applications for voluntary retirement from all employees, and it plans to lay off up to 3,000 workers. If the number of employees applying for voluntary retirement is low, the carmaker will begin issuing pink slips.
The carmaker is also offering massive discounts and incentives for consumers as sales declined around 50 percent due to rumors of GM's possible pullout from Korea. Amid declining sales, it decided to offer a five-year, 100,000 km guarantee on its subcompact Spark, midsize Malibu and Trax small SUV.
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