GM exits India and South Africa, saves $100m
That profitability and strong financial performance is a top priority at General Motors nowadays is demonstrated by two more drastic decisions. GM will stop Chevrolet sales in India and South Africa by the end of the year and sell its LCV manufacturing plant in the latter country to Isuzu Motors. This and other action will reportedly translate in annual savings of roughly $100 million.
Said Mary Barra, GM chairman and CEO: “As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company. We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility."
Although GM will stop selling vehicles in India, it will retain its Indian manufacturing plant in Talegaon, the output of which will be sold to overseas markets such as Mexico and South America. The Detroit-based OEM also said it would streamline its regional HQ in Singapore, which retains responsibility for the remaining regional business and markets, including Australia and New Zealand, India, Korea and Southeast Asia.
Picture copyright: GM Authority, 2017