Import Not Manufacturing
India is emerging as a new export base for GM while the automaker is trying to improve its regional profitability. In the meantime, GM Korea’s significance is likely to be affected, as GM is said to be planning to import the Chevrolet Impala to Korea instead of producing it locally.
GM recently relocated GM International Operations (GMIO) from Shanghai to Singapore and set up a new office to be in charge of business in China. This is to better penetrate the Southeast Asian and Indian markets, where car sales are skyrocketing.
The relocation is part of GM’s plan to improve regional profitability, which includes its manufacturing facilities in India increasing in significance as a compact car supply source covering emerging markets like Asia. GM is going to export the Chevrolet Beat from India to Chile from the latter half of this year and to Africa from 2015.
“It seems that GM is satisfied with the production capacity and auto parts quality of the Indian facilities,” said Daelim University College Professor Kim Pil-soo, adding, “The new plan shows that GM is adhering to its strategy of production in and export from low-cost regions for profit maximization.”
Although GM clarified that the next-gen Cruze would be manufactured in Gunsan, Korea, GM Korea’s future is still dim. No plan for any next-generation model has yet been fixed for the Second Bupyeong Plant, the Engine Plant in Bupyeong, or the Diesel Plant in Gunsan.
The recent news that GM will import the Chevrolet Impala in the form of finished goods has added to the concerns along with the decline in its exports as of late.