General Motors recently sold its Opel brand to PSA but, according to company CEO Mary Barra, revisions to the company’s international operations may see even more of the American conglomerate’s assets sold off or discontinued.
Selling Opel meant that General Motors’ global volume decreased by 12% but this doesn’t look like enough of a cut to make the business more streamlined. North American cars and “select” international markets are supposedly next in line to get the cut owing to low profits and weak franchise strength.
By trimming these elements, General Motors will be able to free up capital that can be put towards the development of bakkies and SUVs, autonomous vehicles, the Cadillac brand and exporting to the Chinese market. This means that GM-built sedans from Chevrolet and Buick could soon be a thing of the past.
GM’s South American investments, which has been battling through economic difficulties, might actually benefit from increased investment based on how much value it holds in that particular market.
As of now, investment in Russia, India, Indonesia, Thailand and Australia has decreased markedly. In light of this development, the downscaling trend looks set to continue, possibly to even greater effect.
Basically, General Motors’ restructuring process aims to sustain the firm’s relevance in the market and adapt to the growing demand for SUV/crossover models worldwide.
