General Motors has announced it will open a new, additional headquarters in Singapore to oversee operations in more 100 countries and territories.
In August, GM reorganized its International Operations to separate its largest market China from the more developing markets. The new headquarters in Singapore, set to be operational by the second quarter of 2014, will direct operations carried out in Southeast Asia, India, South Korea, the Middle East, Africa, Australia and New Zealand. GM will keep its headquarters in Shanghai, allowing the company to focus on the large operations currently being carried out the country.
“What GM wants to do is strengthen its sales in high-growth markets in Asia and Africa, especially markets such as Indonesia,” Namrita Chow, an analyst at IHS Automotive in Shanghai told Bloomberg. “A hub in Singapore will help GM expand its focus on these markets without those markets being sidelined by the huge China operations.”
GM sold 2.48 million vehicles in China last year and is on track to deliver another 3 million this year. The automaker is investing $11 billion by 2016 on new plants and products in the country, including four assembly plants to help boost production numbers up to 5 million vehicles a year by 2015.