GM ending operations in 3 countries

WASHINGTON General Motors announced Monday it is taking “decisive action” to transform its international operations and “wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021.” In a statement, the company also announced that it had signed “a binding term sheet with Great Wall Motors to purchase GM’s Rayong vehicle manufacturing facility in Thailand; and would withdraw Chevrolet from the domestic market in Thailand by the end of 2020.” GM President Mark Reuss said in this regard that “after considering many possible options and putting aside our personal desires to accommodate the people and the market we came to the conclusion that we could not prioritize further investment over all other considerations we have in a rapidly changing global industry.” “We are restructuring our international operations, 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 the areas of EVs and AVs,” CEO Mary Barra said.

As a result of these actions in Australia, New Zealand and Thailand, the company expects to incur net cash charges of approximately USD 300 million, according to the statement. The company expects to record total cash and non cash charges of USD 1.1 billion.

Source: Kuwait News Agency