DETROIT – General Motors’ resolve to withdraw from Australia, New Zealand and Thailand as a component of a strategy to go to markets that produce sufficiently good investment returns caused dismay Monday among officials involved in task losses.
The company said Sunday that it plans to cut sales, engineering and design activities for its historic Holden logo in Australia and New Zealand in 2021. It also plans to sell its Rayong plant in Thailand to Great Wall Motors in China and remove the Chevrolet Marque from Thailand until the end of this year.
“This is a very disappointing outcome,” said Karen Andrews, Australia’s Minister of Industry, Science and Technology, who said it was unlucky, either because about 500 employees would lose their jobs, but also because they “only informed the government of this decision before. “the announcement. “
Dave Smith of the Australian Manufacturing Workers’ Union expressed regret.
The idea of Holden’s staff that they had “lived the worst, and that’s not the case,” Smith said. “For many of them, their many-year-old staff has been very unwavering with the CorporateArray. . . they enjoyed being part of the automotive industry, and now it’s an iconic logo coming to an end; will mean the end of his work. “
GM has 828 workers in Australia and New Zealand and 1,500 in Thailand, the company said.
In Thailand, the resolve to sell GM’s plant in Rayong, southern Bangkok, would possibly end up being good news for workers.
Great Wall Motors, a leading manufacturer of car and van gaming applications, has stated its goal of expanding Thailand’s plant as a base to Southeast Asia.
“We will also announce the progression, studies and progression of the local chain of origin and similar industries, and make a greater contribution to the public treasury of local governments in Rayong and Thailand,” said Liu Xiangshang, Great Wall’s vice president of global strategy.
Thailand is still determined to be the “Asian Strait,” said Krichanont Iyapunya, spokesman for the Ministry of Industry, who said plant closures and openings are constantly occurring.
“The auto industry wants to adapt,” Krichanont said.
Liu, of Great Wall Motors, said the Thai expansion component of the company’s global drive, following the launch of a plant in Tula, Russia in 2019, and planned to obtain GM’s plant in Talegaon, India.
GM has had problems in Asia over the past year. Its overseas operations, which come with China, lost $200 million last year, adding $100 million in the fourth quarter. He analyzed the business case for long-term production at the Rayong plant, but low capacity. use and low sales volumes “have made GM’s continued production unsustainable,” the company said.
GM CEO Mary Barra said the company must focus on markets where it can generate strong returns, cutting operations in Australia, New Zealand and Thailand to sell specialized niche vehicles. GM will serve its workers and consumers in the transition, he said.
GM is doing the same in Japan, Russia and Europe, where “we don’t have a significant size,” he said.
“We are in favor of a niche presence by promoting high-end imported cars backed by a tight GM structure,” Julian Blissett, senior vice president of foreign operations, said in the statement.
GM said it will honor all market promises and continue to supply spare parts. Local operations will also address recalls and any security issues, the company said.
Detroit’s trained automaker expects to receive $1. 1 billion in monetary and non-monetary rates this year as it cuts operations in all 3 countries.
GM has a long history in Australia under the Holden brand, where cars were designed and sold in the United States and other markets. The Pontiac G8 from 2008 and 2009, for example, designed as a Holden Commodore and built in Australia. market share, which almost 22% in 2002, fell to just over 4% last year.
GM President Mark Reuss, who once led Australian operations, said the company had explored features to remain Holden, “but none can succeed over the demanding investment situations needed for the highly fragmented right-wing driving market, the economy to brand expansion,” and provide an adequate return on investment” , he said in the statement.
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AP Business editor Elaine Kurtenbach and journalist Preeyapa Temcharoen in Bangkok contributed.
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