Chevrolet to pull out of India, South Africa

Evrard Martin
Mai 19, 2017

The move is aimed at driving stronger financial performance and focus its capital and resources on business opportunities expected to deliver higher returns.

"Now that GM has made it clear that it is disinvesting in the country‚ we will also probe whether this is not an agenda by the auto company to dump the remainder of its cars on the South African market". These factors, however, are applicable to all carmakers and yet GM despite being one of the early global entrants in India has failed to make a mark in the country.

GM India's export business has tripled over the past year, boasted the departing carmaker. The company also announced transitioning its East and South Africa operations to Isuzu Motors and phasing out the Chevrolet brand in those markets too. The company has been struggling to get good numbers in the market for a long time now and henceforth it will focus on its growing vehicle export manufacturing operations from India. Rumours suggest that Chevrolet might continue to employ the service staff for the next 2 years in order to cater to all after sales needs of its existing customers.

General Motors India will now operate all its manufacturing operations from its second plant at Talegaon in Maharashtra. Isuzu will also be taking over the parts centre because it will be manufacturing trucks and commercial vehicles.

India has just announced that they will stop local sales of their cars by the end of this year. The company adds that following the sale of Opel to the PSA Group, it will work with the new owner to formulate a strategy for Opel in SA. Importantly, existing Chevrolet and Opel customers will continue to be supported in the market.

The new company will be known as Isuzu Motors South Africa.

GM India started its Indian journey in 1996 and now offers products under the Chevrolet brand in the country.

The GM International office will be streamlined to help deliver increased organizational efficiencies. The charge will be treated as special and excluded from the company's EBIT-adjusted results.

Ford Motor Co plans to build a $900 million production plant in India, doubling its investment in the country, as the U.S. carmaker seeks to. These statements are based on current expectations about possible future events and thus are inherently uncertain. There were also talks in 2015 about investing more money for the Global Emerging Vehicle or GEM project. SAIC cars were Chinese cars with the Bowtie logo on the grille and were being sold in hope that the logo will be enough to convince the consumer. GM undertakes no obligation to update publicly or otherwise revise any forward-looking statements.

D'autres rapports CampDesrEcrues

Discuter de cet article