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Mobile WebSiteAccording to foreign media reports, General Motors announced the end of this year will be suspended in the Indian market to sell cars and will sell the business in South Africa, the strategy is to adjust the focus of the funds and work focus on the more profitable market.
GM said Thursday that it would spend $ 500 million in the second quarter to rebuild operations in India, Africa and Singapore. The plan to invest $ 1 billion in India to produce low-cost cars was also stranded. GM said that $ 200 million in spending of $ 500 million would be cash outlay. With a savings of about $ 100 million for GM's global operating expenses over the course of a year, compared with $ 800 million last year.
GM gradually India and South Africa market China as the primary goal
General Chairman Dan Ammann told reporters in an interview that the latest restructuring plan and a series of earlier attempts to withdraw from the loss of the market so that GM can put more money and energy in the more familiar markets, including China, North America, and GM said it would release a swift offensive to both markets. In addition, GM's annual investment in the areas of automatic driving and transportation services is about $ 600 million.
GM and Ford and other car prices have found that in emerging markets outside China to invest in the cost of increasing. Last year, GM's total sales in India and South Africa reached 49,000.
General CEO Mary Barra 2015 to visit New Delhi announced that it will invest 1 billion US dollars to produce Chevrolet models. But since then, GM's sales in India will be depressed, but also can not match with India's domestic Maruti Suzuki. It is understood that GM has been in the Indian market for 20 years, but its share of passenger car sales in India is less than 1%.
Now, GM plans to stop selling Chevrolet brands in India after the end of the year, but will produce only export models at the Talegaon plant, which currently has a total of 2,500 employees. In addition, GM also said that the design engineering center in Bangalore will continue to run.
GM's $ 5 billion Global Emerging Markets Investment Program (GEM), which has been working with SAIC, has enabled GM's global sales to reach 2 million units, mainly in South America, Mexico and the Chinese market. Ammann said the potential for these emerging markets continues to grow.
South African market - business transfer to Isuzu
South Africa, GM said it would halt the production of Chevrolet models in South Africa and sell the plant in South Africa to Isuzu, which also included a 30% stake in Isuzu truck South Africa joint venture. Isuzu said in February that it would buy out 57.7% stake in GM's joint venture in Kenya.Singapore headquarters face layoffs
In addition, GM's Singapore-based international operations headquarters will face layoffs, and the number of layoffs has not yet been announced, but GM said that the current headquarters of the work of about 200 people.
Since Barra took over GM in 2014, the former global automotive industry's dominance began to launch a rapid offensive against the Chinese market, and in North America and Latin America market has also increased investment in light trucks and SUV. In addition, under the impetus of the times, GM is also increasing investment in automotive finance and transportation services, which will eventually be applied on unmanned vehicles.
