Kez Casey | May 19, 2017

General Motors has announced its latest restructuring plans, revealing an ever-shrinking presence on international markets with plans to remove the Chevrolet brand from the Indian and South African markets.

The move follows the European withdrawal of Chevrolet from the European Market (except Russia) in 2013, and comes hot on the heels of GM’s sale of Opel and Vauxhall to Groupe PSA in March this year.

While the Chevrolet brand will no longer maintain a showroom presence in India, GM will continue its manufacturing operations in an export-only capacity. GM South Africa’s light commercial production facilities will be transitioned to the control of Isuzu.

GM CEO Mary Barra cited the restructure as an essential part of the company’s long term plans following an internal operations review that began in 2013.

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” Barra said. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility.

GM currently also distributes the Opel brand in both India and South Africa, with responsibility for that business unit’s operations to come under the control of Groupe PSA later this year.

Isuzu is also set to take control of GM’s East African operations, as part of a separate deal announced in February.

The flow-on effect from the recent changes will also see changes made to GM International’s regional headquarters in Singapore which will continue to manage what remains of GM’s operations in markets including Australia, New Zealand, Southeast Asia, and Korea.

General Motors estimates savings from the closure of those overseas operations at around US$100 million per year, but will incur a US$500 million cost to complete the transition. Chevrolet sales will come to a close in both markets by December 31st 2017.

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