GM International Operations (GMIO) is somewhat of a mixed bag. It includes the vital high sales volume and high growth potential market of China, medium-volume and low growth potential Australia and New Zealand, as well as low volume and high potential markets such as India, Indonesia, and Thailand.
Adding to the division’s complexity is a hodgepodge of brands: Chevrolet, Buick, and Cadillac are all on sale in China,; Australia has a Holden-badged lineup mostly comprised of Chevrolets, three “actual” Holdens (that aren’t long for this world) as well as a few Opels in the near future, while the rest of the region strictly markets Chevrolet vehicles.
In 2014, GMI reported earnings before income and taxes adjusted (EBIT-adjusted) of $1.2 billion, down $100 million compared with $1.3 billion in 2013. Suffice to say that China made up the nearly all of the revenue and profit for the region, while other markets posted losses or broke even. Despite this, GM has been on a quest to improve its performance in those markets that have traditionally been less than stellar performers.
Over the last 15 months, the automaker has made the following key transformational change actions across GMI:
- December 11, 2013: GM announced GM Holden’s transition to a national sales company in Australia and New Zealand, with plans to cease manufacturing in Australia by 2017
- August 5, 2014: GMI opened its new regional headquarters in Singapore
- February 5, 2015: GM Holden announced a “new start” with the introduction of 24 new vehicles and 36 powertrain combinations over the next five years
- February 15, 2015: GM India announced the launch of the Chevrolet Trailblazer SUV in 2015 and Spin MPV in 2016
- February 26, 2015:GM announced the transition to a national sales company in Indonesia, with plans to cease manufacturing at its Bekasi plant in June 2015
- February 27, 2015: GM announced the restructuring of GM Thailand, and a realignment of Chevrolet brand in the country
While we don’t know what changes the GM International division will implement next, we hope that they will be in favor of making the region less reliant of the Chinese market by boosting GM’s sales, market share, and profit in other markets throughout the region, while further leveraging Chevy’s global and, when needed, regional product portfolios.
Stay tuned to GM Authority for further business coverage of GM International.