GM Looks To Strengthen International Operations With These Six Key Changes
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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.
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GM could strengthen other areas, too.
Fun fact: While Japanese brands produce spare parts for decades, even after ceasing production of a model, GM stops after 7 years.
What is wrong with that picture? (1) Japanese brands break down and need replacement parts at a much lower rate and (2) the 7 year cut off is probably another way for GM to save a penny so it can be mismanaged elsewhere.
A mechanic once told me that GM fuel pumps put his kids through college and he could count the number of times he replaced fuel pumps on other makes on one hand. Interestingly, some of the other brands (VW, for example) had access points for the fuel pumps so that the gas tanks didn’t have to be dropped; these makers chose to do this despite the low failure rate. I am sure GM is saving $2.50 per car by not doing the access point (and an additional $.50 by going with the cheap fuel pump). That adds up and lines the pockets of fat cats in Detroit.
The above could move an objective thinker to draw conclusions about whether GM is a company that cares about its customers long term.
GM doesn’t stop producing all parts after 7 yrs. Our parts department can get parts for 1990’s vehicles yet (my brother in law is rebuilding a 1987 Silverado Short Box 4×4 and many of the parts I pick up right in our parts department). It is the more common parts that are now produced by many aftermarket companies (jobbers) who make them cheaper and sell them cheaper that GM chooses not to keep in production. There are so many jobber/aftermarket suppliers of GM, Ford and Chrysler/Mopar parts that the big three choose not to compete with those parts. Plus, many of the aftermarket companies also have contracts with GM, Ford and Chrysler to supply parts for new vehicles coming off the line, so it makes no sense for GM to compete with them on parts for older vehicles and put their own suppliers out of business.
Try and find jobber/aftermarket parts for a 1990 Corolla. There are none. So Toyota continues to make parts for them because anyone needing a part MUST buy it from Toyota (and pay a heck of a lot more for it) than the person looking for the same part for a GM who can buy it from 5 aftermarket suppliers.
Come on Magirus, use your head for a moment.
Oh Magirus, you’ve done it again!!
Lets give full disclosure here.
Some things GM does cut off at 7 years but what he did not tell you is the part may not be made but it is still in stock and often is still available for years after the cut off. GM has always done this as do many MFG. It would be useless to continue making many parts that would just sit on the shelf unsold then then get dumped years later like so many already do on people who take them to the swap meets and sell.
The other parts remain in production for years as they are common over many years and models and are often still made 25 years later.
The parts that do go out often get reproduced if there is a need for them and GM works with many restoration parts companies to give them the support to make the parts and even sell many of them through the dealers as approve restoration parts.
Lets put it this way I have a Pontiac that is 30 years old an it is not even one of the popular ones and I can get about 95% of the parts for it.
As pointed out above you can rebuild about any year truck and with the help of GM you can build a 57 Chevy from the ground up as the parts are still available as approved GM restoration parts.
What parts GM and most other MFG do not make are often made by Standard Motor parts and their companies and they often fill in the gaps.
As for the fuel pumps about 80% of all models at each MFG have had access panels to get to the pump under the back seat or in the trunk. I know GM has done this on cars as far back as 1990. The few that do not are like a Cobalt and Sunfire but they are some of the few GM did not do this on. Most MFG has a model or two like this such as the Ford Taurus 2006 still had to have the tank removed but like the Cobalt it is about a 20 min job to remove.
As for the pumps there are only a couple companies that make pumps and they are all about the same quality wise. Most fail because many people do not fill up their cars and the pumps are never in fuel to cool them.
Also the methanol has done damage to pumps in many years as it is harsh on fuels system including many that were not designed to work on it.
Magrius you are so full of it your eyes must be floating in the BS. You are the best example of what is wrong with the web as you contribute nothing and just spread lie after lie and half truth.
You may fool some folks who just do not know but you do not fool those of us who work in the auto related industries and deal with the parts you so claim are not available. So just crawl back into your hole and sit in your own spew.
Folks please do not be fooled by Magrius. He has done nothing but troll here and spread much false info and lies. I would have given him a benefit of a doubt that he just made a mistake but all his post are this way so they are not mistakes.
If you would like to check the info just go to you tube and look for fuel pump replacement on cars like the GP, Regal and others back to the 90’s and you will find that GM like most others have an easy to get to pump on most of their models. Also check out the Cobalt and Taurus and Mustang up to 2004 and see they have tanks that need to come down. They are the minority but nearly all MFG’s have them. In fact most companies have PITA cars to work on and can be a pain to deal with.