Chevrolet To Exit India And South Africa

General Motors continues to restructure its international operations as the company has announced plans to phase out the Chevrolet brand in India and South Africa.

Besides phasing out Chevrolet, GM India’s manufacturing operations will be refocused towards producing vehicles exclusively for export. Meanwhile, GM South Africa’s manufacturing operations will be transferred to Isuzu Motors.

The Chevrolet brand will be phased out of both continues by the end of the year and GM says the decision is the result of a desire to “focus its capital and resources on business opportunities expected to deliver higher returns.”

In a statement, GM CEO Mary Barra said “As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company.” She went on to say “Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term. We will continue to optimize our operations market by market to further improve our competitiveness and cost base.”

GM International President Stefan Jacoby expanded on Barra’s comments by revealing the company determined the amount of investment required to offer an extensive product lineup in India wouldn’t lead to long-term profitability. However, exports from India have tripled over the past year so the company decided to keep its Talegaon manufacturing plant and focus on the export market.

The situation is similar in South Africa as Jacoby said “We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities.”

Reuters reports GM sold a combined total of 49,000 vehicles in India and South Africa last year. Given the low sales, it’s not hard to see why the company decided to exit the markets and save around $100 million annually.

H/T to Jurie Cronje

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  • SamuraiJack

    O well, so much for getting the new Camaro 🙁

  • rover10

    Once this kind of market retraction begins, it knows no end. The burning question is, who fills the vacuum left behind? I think we all know who, the Koreans and the Japanese. Even though all car manufactures are currently wheary about moving forward, it will not mean that market opportunities won’t be allowed to slide. I fear the once mighty GM is inexorably withdrawing to its routes.

  • roy

    I mean it is stupid… GM India….. They never brought actual good products and what they did were chinese cars… Which were pathetic considering the competition. Now with such products what were they expecting? A huge success ? And now exiting a car market such as India…. And just when volvo is thinking of local assbly

    • brn

      They were competing against Tata. Not exactly setting a high bar. Even a Cruze is overkill and would price itself out of the market.

  • Ilbirs

    GM in this year got out from Europe, now India and South Africa. Where will be the next withdraw? I suspect there’s something untold to the great audience about the financial health of the group.

    • Six Thousand Times

      You do start to wonder.

    • MP4-12C

      They will probably crawl back to those markets in a few years time. And spend a lot of money to do so, much more than they have saved by pulling out.

      • gary4205

        This is a company that spent SEVEN YEARS and $5 BILLION to create Saturn, which was more of a marketing ploy than a car.

        In the end it caused them to kill off Pontiac and Oldsmobile, the oldest car brand in America.

        By contrast, Chrysler did Neon in 36 months for only $900 million.

  • And that’s how you finish last. 🙂

  • Tumbi Mtika

    Sooo, GM’s current plan is to isolate itself from the world.

    Got it.

    • Tumbi Mtika

      I guess Ford…wins?

    • Benjamin B.

      GM betting on America and Trump

  • Henry Kapadia

    GM india has such a pathetic line up that they are hardly desirable. They were just bringing in stupid chinese products and selling them at exorbitant prices and not to mention the hopeless after sales service, horrendous after sales. They would have still been successful if they launched the sonic hatchback, impala, along with the camaro through the CKD route and a better D segment sedan along with a better proposition SUV and the Chevy trax..Again a very big missed opportunity by GM India…The top management definitely is solely responsible for seeing such a big opportunity slip out of their hands.

  • and Opel?

    • OdysseyTag

      Opel will probably stay and be spun-off or relaunched next to PSA dealerships (could take the place of Citroen here in SA seeing as they’re leaving) once the GM showrooms close down. Isuzu I guess then becomes independent which would be weird to see.

  • OdysseyTag

    Welp, GM is one of those companies I think nobody should take seriously besides the US. After the ’08 financial crisis, they withdrew Hummer (defunct), Saab (deduct) and Cadillac brands here in South Africa which made sense as part of their Chapter 11 fallout.

    As a result, Chevrolet bolstered their offering with arguably great results. The Spark, Aveo, Sonic, Cruze, Cruze Hatchback, Orlando, Captiva, Trailblazer and Ute bakkie together made for a pretty solid offensive but as time went by, they dropped one model after the next. The Spark and Ute in particular are still hot sellers.

    Anyways, this will probably mark the 2nd or 3rd failed attempt to reenter the South African car industry for a sustainable period of time. The fact that the Trax and Colorado weren’t offered here to compete in the highly lucrative crossover and full-sized bakkie segments was also pretty much a suicidal move on their part.

    • TheHake

      Did the Trailblazer ever sell? I left just as that was introduced. But I guess with the SA mentality, no-one in the market for a Fortuner would consider a Chevy.

      • OdysseyTag

        Can’t say it did, they’re quite scarce on the roads, probably due to the minset you speak of. Start of the Ford Everest’s local production didn’t help it’s sales much either…

        • TheHake

          Thought so. The Everest is better in any case.

  • Benjamin B.

    No one wants shitty Daewoos with bow ties.

  • gary4205

    There’s a BILLION people in India. If you can’t make that work in your favor, everyone from the CEO on down needs to be fired.

    GM is making some of the best cars in it’s history, but is run by idiots.

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