General Motors wiped the loss-making Opel and Vauxhall brands from its balance sheet just one week ago, after it sold off its entire European operations to France’s PSA Groupe, but it isn’t done yet.
A new report from Automotive News signals the General has more downsizing to do in various regions of the world, and cost cuts are likely coming to North America, too.
“There’s a little bit more work that we’re doing in the international markets,” GM CEO Mary Barra told reporters on a conference call, according to AN. “Our overall philosophy is that every country, every market segment has to earn its cost of capital.”
GM’s international markets up for cuts may include Australia, India, Indonesia, Russia and Thailand, where the automaker has already scaled back or completely gutted local operations entirely. However, GM will continue to finance its unprofitable South African operations due to a highly-valued franchise chain.
Expect cost cutting to hit home as well. A chart obtained by media shows GM’s plans to reduce investments in North America in an effort to focus on three different, but key, areas. Those include the Cadillac brand, the Chinese market and SUVs and pickups.
GM could cut some of its full-size sedan offerings, like the Chevrolet Impala, to offset dwindling passenger car sales or it may not update these vehicles nearly as often as it has been in the past. Subcompact cars may be on the radar for less investment as well, like the Chevrolet Sonic and Spark.
Time will tell if Barra’s bold moves to boost profitability will be the right ones.