General Motors President Mark Reuss declared on January 27, 2020 that $2.2 billion would be invested at the automaker’s Detroit-Hamtramck Assembly Plant in Michigan to produce new all-electric trucks and autonomous vehicles.
Detroit- General Motors It thinks it can win back market share in China soon after attaining its rough target Last year, they were down to a twenty-year low that was said by GM’s president, Mark Reuss of General motors. The changing market conditions and fierce competition from within have been attributed as reasons for this.
The experienced GM executive added that new electric vehicles – EVs (all-electric and plug-in hybrid) as well as Buick brand redesign will enable the company to turn around the situation in the area.
According to regulatory filings, operating profits at GM have also fallen by 78.5% since peaking in 2014. This leaves apart from general motors’ operating profits which have declined by 78.5% since peaking in 2014, according with regulatory filings.
Reuss also commended Chinese counterparts of Wuling Motors who are partners of General Motor for their competitiveness. In China GM first commenced operations in 1997.
“Well you can look at it any way you want from a larger geopolitical perspective but for us in China having such deep engagement with our joint venture partners there over many years is “We have an advantage with Buick and Wuling, and it goes both ways.”
GM’s decline market share has resulted from nationalism as well as generational shift among customers regarding automotive industry and electric cars Hence., other U.S car makers face challenges arising from U.S-China geopolitics
However, sales of GM branded vehicles like Buick and Chevrolet reduced more steeply than those of joint ventures’ brands in China. Joint venture models made up approximately sixty percent (60%) of these two million one hundred thousand (2.1m) cars that GM sold in China during the last year.
The possibility of GM leaving China has been raised by its sluggish performance in other markets over recent years as the market drops.
“Nothing is impossible to ensure that GM has a strong future and creates appropriate profitability and appropriate returns for our investors,” noted the CEO of General Motors, Mary Barra, at an investor meeting in February. ”
GM said on Tuesday it had “Leadership Change” in China Steve Hill, currently vice president global commercial operations will take over from Julian Blissett who is moving from his role as GM’s China president. It is effective from June 1. Gm announced on tuesday ‘Leadership change’ in china (2020).
