Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
GM pulled out of European production with the sale of Vauxhall and Opel in 2017, and they had pulled out of Indonesian production in 2015. Now, they are pulling out of Australia, New Zealand (under the Holden brand) as well as Thailand.
These may be the right moves to get them back in the black, as they are retreating from unprofitable markets. However, there's no getting around the fact that these are significant contractions in the size and scope of operations, and making them more dependent on sales in the remaining markets they play in - the United States, China, Latin America and South Korea.
"GM is 'focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility,' especially in electric and autonomous vehicles, GM Chair and CEO Mary Barra said in a statement late on Sunday."
GM pulled out of European production with the sale of Vauxhall and Opel in 2017, and they had pulled out of Indonesian production in 2015. Now, they are pulling out of Australia, New Zealand (under the Holden brand) as well as Thailand.
These may be the right moves to get them back in the black, as they are retreating from unprofitable markets. However, there's no getting around the fact that these are significant contractions in the size and scope of operations, and making them more dependent on sales in the remaining markets they play in - the United States, China, Latin America and South Korea.
"GM is 'focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility,' especially in electric and autonomous vehicles, GM Chair and CEO Mary Barra said in a statement late on Sunday."
GM is not in the red they haven’t recorded 2019 profit and lost statement but this was from 2018.
General Motors posted an $8.1 billion net profit for 2018, fueled by better prices for vehicles sold in the U.S., its most lucrative market. It's a strong rebound from the previous year when the company lost $3.9 billion on a giant tax accounting charge.Feb 6, 2019
GM is not in the red they haven’t recorded 2019 profit and lost statement but this was from 2018.
General Motors posted an $8.1 billion net profit for 2018, fueled by better prices for vehicles sold in the U.S., its most lucrative market. It's a strong rebound from the previous year when the company lost $3.9 billion on a giant tax accounting charge.Feb 6, 2019
Point taken. But they were losing money in Europe and most of the southeast Asia/Pacific region, and have pulled out of these markets. The Asia/Pacific restructuring itself will cost them money as well. Do you see all of this retreating as positive news?
As you say, figs not available yet for 2019, but per the article, "GM has forecast a flat profit for 2020 after a difficult 2019"
Does this mean GM is out of all left-hand traffic markets now?
Yes, I think so, OyCrumbler. Per the article, "Like Britain, Australia and New Zealand are right-hand drive markets. With sales of GM’s Australian Holden brand plummeting, the company could not justify the investment to continue building right-hand drive vehicles, GM President Mark Reuss said."
Makes sense from that point, especially with all the safety regs it's probably more difficult to build a "global" platform that can easily adjust from L to R hand drive. Sure just swap the components over but I'm sure with the additional openings and firewall/frame strengthening points, crumple zones, etc. you cannot simply make a hole punch section that can be popped out depending on how the car is being fitted. Not to mention how it connects to the drivetrain, etc. Just a lot of logistical complexity to sort out unfortunately without have a dedicated line for L or R.
My understanding is that the Silverado, Camaro, and Corvette will continue to be sold and will be RHD. Those are premium vehicles and they will be able to charge more in order to cover the costs of RHD.
IMHO, it's a smart decision. They sold only 48K Holden vehicles last year and all automakers other than Hyundai are down there.
They have been slowly withdrawing from Australia for a decade. They made no secret about their plans to leave Australia. it has nothing to do with any current problem, just an ongoing market strategy. Getting out of bad markets is a good strategy.
Makes sense from that point, especially with all the safety regs it's probably more difficult to build a "global" platform that can easily adjust from L to R hand drive. Sure just swap the components over but I'm sure with the additional openings and firewall/frame strengthening points, crumple zones, etc. you cannot simply make a hole punch section that can be popped out depending on how the car is being fitted. Not to mention how it connects to the drivetrain, etc. Just a lot of logistical complexity to sort out unfortunately without have a dedicated line for L or R.
Not too long ago GM had a brand that was sold all over the globe. In both Left Hand and Right Hand drive configurations. This brand had developed an expertise in maximizing performance from small displacement engines. Was a global standard for crash-worthiness. Offered both gasoline and diesel engines, even propane for a while! Delivered a functional plug-in hybrid to the Geneva Auto show for display before the GM Volt was developed. Had on-board electronics that surpassed everything developed out of GM-Detroit.
So what did GM do with this brand? They suffocated it, bankrupted it, and shut it down.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
