GM Restructures International Markets to Strengthen Global Business Performance


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Headquartered in Detroit, General Motors Co. has decided to restructure its international operations, specifically India and South Africa.

Photo courtesy: General Motors Co.

Detroit automaker General Motors Co. today announced key restructuring actions throughout its GM International operations to drive stronger financial performance and focus its capital on business opportunities expected to deliver higher returns.

As part of the restructuring, the company will focus its GM India manufacturing operations on producing vehicles for export only, and will also transition GM South Africa manufacturing to Isuzu Motors. GM’s Chevrolet brand will be phased out of both markets by year’s end. 

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” says Mary Barra, GM Chairman and CEO. “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.

“Globally, we are now in the right markets to drive profitability, strengthen our business performance, and capitalize on growth opportunities for the long term. We will continue to optimize our operations market by market to further improve our competitiveness and cost base.”

The decisions were made following a review of operations in GM International markets and reflect a series of actions taken to improve global business performance that began in late 2013. GM is working with employees and union representatives in affected areas to provide transition support.

Following the restructurings, GM expects to realize annual savings of approximately $100 million and plans to take a charge of approximately $500 million in the second quarter of 2017, about $200 million of which will be cash expenses. 

IN RELATED NEWS, GM today announced a collaboration with cellular provider AT&T to expand their 4G LTE Internet service in GM Fleet vehicles this summer. The upgrade would allow business customers to utilize unlimited data, turn their vehicles into wireless hotspots, and receive simplified invoices with centralized billing.

"Customers using an OnStar 4G LTE connection can help make their company vehicle drivers more customer-focused and productive, so the growth potential is huge," says Ed Peper, U.S. vice president of GM Fleet at the GM Fleet Solutions Summit in Las Vegas. "Working with AT&T, we will enable our business customers to receive all the benefits of high-speed connectivity with more flexibility and less paperwork using the shared unlimited data plan capability."

GM Fleet customers with OnStar 4G LTE-equipped Chevrolet, Buick, GMC and Cadillac vehicles already reap the benefits of productivity on the go with AT&T data plans. 

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