General Motors Korea Co. has pledged to beef up traditional and electric vehicle lineup and serve as the research base for new mobility businesses such as car-sharing in Korea to quench rumors about pulling out of Asia’s fourth-largest market.

The company did not hold a public event on Monday marking its 15th year in Korea. GM Korea was born through the acquisition of the country’s third-largest automaker Daewoo Motor in 2002.

Over the last three years, the company’s operating losses have snowballed to nearly 2 trillion won ($1.77 billion). In September, monthly sales fell below 9,000 units for the first time in almost seven years with its market share slipping from third to fourth. According to industry sources, the Korean unit is likely to undergo massive restructuring as it has been designated by global management as a high-cost operation.

“GM Korea’s sluggish performance is largely due to its lack of investment in new models and R&D,” said Lee Ho-geun, professor of automotive engineering at Daeduk University in Korea. “The firm may shut down parts of its plant in Gunsan.”

There had been speculation that the Detroit-based automaker may abandon Korea after the state-run Korea Development Bank, the second-largest shareholder of GM Korea with a 17 percent stake and veto rights against management decisions, loses some of these rights on Tuesday upon expiry of the 15-year contract.

The company has been denying the rumors and said it plans to bolster new lineup in show of its commitment to the Korean market.

Recent new releases - Chevrolet Cruze compact sedan and all-electric Chevrolet Bolt - failed to make an impact due to their high prices and supply delays. The firm plans to release the Chevy Cruze diesel early next month and ramp up its recreational vehicle portfolio in addition to the compact Trax sport utility vehicle (SUV). Introduction of mid-size Equinox and full-size Traverse is also under review, with a road test underway. Supplies for Bolt, which are produced in the U.S., would increase by eight- to ten-fold from this year’s 600, the company said.

GM Korea will actively develop new mobility technologies and businesses such as car sharing and electric cars.

By Park Chang-young and Kim Hyo-jin

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