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Bankrupt GM bullish on Asia

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  • General Motors
    GM has reported that its sales in Asia Pacific are soaring.

    Bankrupt General Motors Corp said its sales in China jumped 75 per cent in May and it may raise its forecast for annual sales and build a new plant, as Asia-Pacific offers a stark contrast to its woes at home.

    As part of its historic bankruptcy, the 100-year-old US automaker plans to close or idle 14 US plants and warehouse operations, shedding up to 20,000 workers there.

    But in separate news conferences and statements across Asia, GM's local executives stressed that lower-cost Asia-Pacific operations would be part of the "New GM" that is expected to emerge leaner and with less debt within two to three months.

    "We are safe. We are part of the new GM," Mark Reuss, head of Australian operation GM Holden, told reporters, adding no jobs would be cut in Australia, where GM employs more than 6,000.

    In contrast to the overcapacity problems in North America, GM said it would need another factory in China within five years to meet its goal of selling 2 million cars in what has become the world's biggest auto market.

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    Kevin Wale, president of GM China, also said that if the "phenomenal" growth continued this month, GM may have to lift its target of expanding 2009 sales by up to 10 per cent. Last month, sales surged 75 per cent from a year earlier to 156,000 vehicles.

    GM makes light commercial vehicles in China in a three-way tie-up with SAIC Motor and Liuzhou Wuling Automobile, and operates a separate car manufacturing venture in Shanghai with SAIC, China's largest automaker.

    ... contd.

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