Mubasher: General Motors announced that it would shut down its sales, design, and engineering operations in Australia and New Zealand and retire its Australian car brand Holden by 2021.
GM’s chairman and CEO, Mary Barra, said the automotive manufacturer aims to restructure its international operations with a special “focus on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility, especially in the areas of EVs and AVs,” according to a statement on Sunday.
In addition, Great Wall Motors agreed to acquire GM’s Rayong vehicle manufacturing facility in Thailand in a deal expected to be complete by the end of 2020. Accordingly, GM will withdraw Chevrolet from Thailand by the end of this year.
“Low plant utilisation and forecast volumes have made continued GM production at the site unsustainable,” the statement showed.
GM’s senior vice president for international operations, Julian Blissett, commented, “In markets where we don't have significant scale, such as Japan, Russia and Europe, we are pursuing a niche presence by selling profitable, high-end imported vehicles – supported by a lean GM structure.”
With these moves, the car manufacturer is forecast to record total cash and non-cash charges of $1.1 billion.