The Globe and Mail reports in its Friday, May 19, edition that General Motors plans to quit
selling vehicles in India by the
end of this year and will sell operations
in South Africa. A Reuters dispatch to The Globe reports that
GM will take a $500-million charge in the second
quarter to restructure operations
in India, Africa and Singapore (all figures U.S.). It
will cancel most of a planned
$1-billion investment to build a
new line of low-cost vehicles in
India.
About $200-million of the
charge will be a cash expense. The moves are expected
to save $100-million a year in
a sector of GM's global business
that last year lost about $800-million.
GM president Dan Ammann
says
the latest restructuring moves
allow GM to focus more money,
engineering effort and senior management
time on expanding
where the company is strong, including
in China and the North
American pickup and SUV businesses,
where GM has a "product
onslaught coming."
GM also has said it is investing
about $600-million a year in
efforts to develop autonomous
vehicles and transportation services.
GM has found it increasingly
expensive to compete
in emerging markets outside of
China.
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