Between the years 2015 and 2030, a significant majority of anticipated automotive industry growth will take place outside of mature markets. In other words, over the next 15 years, the biggest opportunities for growth in the automotive industry will take place in developing markets. To capitalize on that opportunity, General Motors has announced a $5 billion investment into developing an all-new Chevrolet vehicle family for said developing markets.
Chevy will create an all-new vehicle family that will replace several existing vehicles, thereby meeting the rapidly-changing demands of customers in these markets. The initiative’s first vehicle is slated for a 2019 launch, and the program is expected to “substantially improve competitiveness and profitability by delivering what customers expect in each market while taking maximum advantage of the benefits of global scale.”
“Strengthening Chevrolet’s position through this major investment is consistent with our global strategy to ensure long-term profitable growth in the markets where we operate”, said General Motors President Dan Ammann.
The new vehicle family will “feature advanced customer-facing technologies focused on connectivity, safety and fuel efficiency delivered at a compelling value,” said Mark Reuss, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “It will be a combination of content and value not offered previously by any automaker in these markets that are poised for growth.”
The vehicle family is being developed by a multinational team of engineers and designers assigned to ensure each model is tailored to meet the expectations of customers in each market. The vehicles will be manufactured and sold in various markets, including Brazil, China, India and Mexico, and exported for sale to other important growth markets. GM has no plans to export the vehicles to mature markets such as the United States. A high level of localization of parts suppliers should drive significant savings over the life of the program, which is expected to grow to more than 2 million vehicles annually.
The new vehicle program will also see GM further expand its partnership with China’s SAIC Motor, where the two automakers will jointly develop the vehicle family’s core architecture (platform) and engine, which is expected to result in significant development cost savings and optimized total vehicle cost. The program represents another important step in GM’s previously-announced architecture consolidation plan.
“We have taken many decisive actions over the past few years to restructure our business in specific markets as part of our plan to become a more customer-focused company and to generate superior returns on our owners’ capital,” said Ammann. “This growth initiative is the next important step toward our goal of building the world’s most valued automotive company.”
Chevrolet will announced more information on the investment plans and all-new vehicle family in the future in each market.