General Motors to stop selling Chevrolet cars in Thailand

[webfact]

General Motors to stop selling Chevrolet cars in Thailand

By Hilary Russ and Yilei Sun

 

FILE PHOTO: A logo of General Motors is pictured at its plant in Silao, in Guanajuato state, Mexico, November 9, 2017. REUTERS/Edgard Garrido/File Photo

 

NEW YORK/BEIJING (Reuters) - General Motors Co <GM.N> is retreating from more markets outside of the United States and China, saying on Sunday that it will wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021.

 

It also said China's Great Wall Motor Co Ltd <601633.SS> had agreed to buy GM's Thailand car manufacturing plant and an engine factory, a transaction expected to be completed by the end of 2020.

 

In rearranging its global operations, GM is accelerating its retreat from unprofitable markets, becoming more dependent on the United States, China, Latin America and South Korea.

 

GM Chief Financial Officer Dhivya Suryadevara told analysts during a Feb. 5 presentation that restructuring GM's international operations outside of China so they produce profit margins in the mid-single digits "does represent a $2 billion improvement" compared with 2018's.

 

Ahead of that presentation, GM forecast flat profit for 2020 and reported a better-than-expected fourth-quarter earnings in the face of a $3.6 billion hit from a 40-day United Auto Workers strike.

 

With the proposed sale of its Thailand plant to Great Wall, GM is giving up an opening to expand its operations in Southeast Asia.

 

GM is "focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility," especially in electric and autonomous vehicles, GM Chair and CEO Mary Barra said in a statement.

 

The changes will lead to cash and non-cash charges of $1.1 billion, as well as the loss of 1,500 jobs in Thailand and 828 in Australia and New Zealand, GM said.

 

Barra has prioritized profit margins over sales volume and global presence since taking over in 2014.

 

In 2017, Barra sold GM's European Opel and Vauxhall businesses to Peugeot SA <PEUP.PA> and exited South Africa and other African markets.

 

Since then, Barra has decided to pull GM out of Vietnam, Indonesia and India. Great Wall agreed in January to buy a GM vehicle plant in India, a transaction expected to be completed by the second half of 2020.

 

Like Britain, Australia and New Zealand are right-hand drive markets. With sales of GM's Australian Holden brand plummeting, the company could not justify the investment to continue building right-hand drive vehicles, GM President Mark Reuss said in Sunday's statement.

 

GREAT WALL GOING ABROAD

Great Wall, one of China's biggest sport-utility vehicle makers, said it will sell cars from the Thai manufacturing plant in Thailand, other ASEAN bloc countries and Australia as it seeks global expansion amid a slowing domestic market.

 

"Such an acquisition could give Great Wall quick access to the ASEAN market, and Thailand is a good choice for its production base amid the country's established supply chain in the automotive industry," Shi Ji, analyst at Haitong Internation told Reuters.

 

The firm, which is building a car plant with BMW <BMWG.DE>, sold 1.06 million cars last year, including 65,175 units for export.

 

"There is no choice, if we don't go global, we will not survive," Wei Jianjun, chairman of the Baoding-based automaker, said last year when Great Wall opened its first full assembly plant in Russia.In January, Great Wall signed an agreement to buy GM's car plant in India. The companies said they expected the transaction would be completed by the second half of 2020.

 

Great Wall rival Geely [GEELY.UL] is also looking to expand its car sales across the ASEAN region with Malaysia-based brand Proton.

 

(Reporting by Hilary Russ, Joe White and Yilei Sun; Editing by Christopher Cushing and Richard Pullin)

 

-- © Copyright Reuters 2020-02-17

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[canopus1969]

So will Chevy vehicles now have a Great Wall sticker on now ?

[thedemon]

I doubt that too many tears will be shed over Chevrolet's demise in Thailand but "retiring" the Holden brand will nothing less than apostasy to some Australians.

 

Bogans driving Great Walls? lol.

[spiekerjozef]

Finally some good news...

[holy cow cm]

Never ever considered a Chevy here. As for Chinese made cars, no way to that as well. 

[CGW]

48 minutes ago, holy cow cm said:

Never ever considered a Chevy here. As for Chinese made cars, no way to that as well. 

What about cars assembled with Chinese parts?

[jlwilliamsjr18]

Google it... https://en.wikipedia.org/wiki/Great_Wall_Motors

 

[HOAX]

Never heard of Great Wall Motors. I did look them up and... naah, stay away.

 

The same could be said about GM as well. In the 20 years they've been in Thailand, have they ever had anything interesting on the Thai market (Chevrolet, Holden, Opel, SAAB...)?

 

All of these brands mentioned has had a number of great cars throughout the history (I even have a 84' Opel Kadett 1.8i in Udon, I love it), but never anything new and interesting that comes to mind while they've been in Thailand since 2000.

 

*Yes, Opel and SAAB is no longer under GM, but they were for a number of years while being manufactured at GM's Thailand plant.

[kevinsan]

They are not here to make money. They are here for the lifestyle. Straight from the horsepowers mouths.

[IamNoone88]

I rented a few Chevrolet's in Thailand - absolute rubbish cars with plastic trim falling off and very cheap quality. I have only purchased Honda and they seem to go forever and are cost efficient to maintain.

[MaxLee]

More mass shooters coming after closure..... 

[Michael Hare]

I have two Chev vehicles here in Ubon. A 2008 Chev Captiva and a 2013 Chev Colorado. Both are okay and drive well on the dirt roads. I guess I will now drive them for the remainder of their lives or maybe I should say my life!

[billsmart]

I've always been a "Chevy Man" when i lived in the U.S.

 

My first car was a 1957 Chevy convertible. (It was about five years old then.) I then had a newer, used 1964 Chevy convertible, and finally a brand new 1967 Chevy Camero SS 396 v8.

I now have a Chevy Colorado truck here in Thailand. I bought it brand new about six years ago. It's been a very good vehicle, and I hope to have it for many more years.

 

I wonder if the dealerships go, if the new owners, Great Wall, will continue to service cars and trucks like mine.

[baansgr]

More job loses....oh dear....will Ford be next?

[Ron jeremy]

GM : junk, period.

[Stocky]

So they'll only need to turn the M upside down.

[ravip]

22 minutes ago, CGW said:

What about cars assembled with Chinese parts?

For many, its only the badge that matters. Totally unaware of the innards!

Same, same as a beautifully 'made up' female.

Edit

The Chevrolet Suburban was a beauty, that was in the 80's

Edited February 17, 2020 by ravip

[RedPill]

2 hours ago, webfact said:

the company could not justify the investment to continue building right-hand drive vehicles, GM President Mark Reuss said in Sunday's statement.

Fine tuning ...

 

[Michael Hare]

25 minutes ago, Ron jeremy said:

GM : junk, period.

The Chevy Colorado trucks are not junk in Thailand. Have you ever driven one?

[natway09]

They never did anything for me including Holden.

[Encid]

Holden Australia has just issued an email bomb to all it's customers:

 

Title: IMPORTANT NOTICE: General Motors retiring Holden brand in Australia and New Zealand

 

 

Dear {name}

 

By now, you may have heard the news that General Motors will be retiring the Holden brand in Australia and New Zealand. This announcement will be felt deeply by the entire Holden family, our customers and our fans.

While we understand the impact that this decision may have on you, we want to provide assurance that Holden will continue to support customers in the following ways:

Honour all existing warranties and guarantees

Honour all free scheduled servicing offers

Ongoing call centre support

Provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand

Recalls or safety-related issues if they arise

We have a long transition in front of us and we are focused on supporting our customers and our Dealers through this change. The doors do not close tomorrow. In fact, your local Dealership remains in operation and any existing bookings and agreements remain in place.

We are commencing work with our Dealer partners on timing to cease sales of new vehicles, as well as transitioning dealerships to authorised service outlets. Any future changes to our Dealer network that have a direct impact on you, will be communicated at that time.

This decision has not been taken lightly, especially considering the iconic status of the Holden brand. Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development.

This announcement will be felt deeply by the many people who love Holden, drive a Holden and feel connected to our company which has been with us for 160 years.

Kristian Aquilina

Interim Chairman and Managing Director
GM Holden

[chang1]

John Cadogan (AutoExpert TV) will have a field day. Instead of fixing GMs problems they will just sell off all the unprofitable parts until nothing is left. 

[RandolphGB]

The Chinese are not exactly renowned for car manufacturing 

[worgeordie]

50 minutes ago, Michael Hare said:

The Chevy Colorado trucks are not junk in Thailand. Have you ever driven one?

Thats because its a rebadged Isuzu....

regards worgeordie

[Chongalulu]

1 hour ago, RandolphGB said:

The Chinese are not exactly renowned for car manufacturing 

No,but you might not be able to say that in 10-15 years time

[bert bloggs]

3 hours ago, holy cow cm said:

Never ever considered a Chevy here. As for Chinese made cars, no way to that as well. 

Bought a chevy Optra many years ago new ,its been a great car ,still looks and drives like new.

[BobBKK]

Personally i think it's a sad loss. Any differentiation is GOOD IMHO unless you enjoy everyone in a Silver Toyota or Honda (which seems like 75% of the population)

[NoComment]

Good news for China, probably?!

[CGW]

Just now, BobBKK said:

Personally i think it's a sad loss. Any differentiation is GOOD IMHO unless you enjoy everyone in a Silver Toyota or Honda (which seems like 75% of the population)

True! Thailand must have the most boring vehicles on the road anywhere! rare to see anything interesting, surprisingly one of the best variation of cars I have seen on the roads in recent years has been in China.

[Vigilante]

Didn't both Ford and GM go bankrupt back in 2009?

Generous infusions of taxpayers money kept them afloat but I think they are zombie companies.