GM CEO says that the company is reconsidering its emerging-market strategy

Article by Anita Panait, on January 29, 2013

General Motors Co. chief executive Dan Akerson remarked in an interview that the carmaker is reconsidering its emerging-market strategy. Such move could prove to be a roadblock for the international ambitions of SAIC Motor Corp., GM’s Chinese partner. Notably, GM’s top honchos have been indicating for around three years that SAIC would be its preferred partner to expand into emerging markets around the world.

For the past months, however, GM has been considering to forge a partnership with French carmaker PSA Peugeot Citroen, not only in Europe, but also in Russia and Latin America. Akerson said during the interview that the priority obligation of GM and PSA to one another is to fix their operations in Europe.

He, however, added that there is real potential that the carmakers could cooperate in other areas. Akerson quipped that their current partnership does not preclude them from forming another relationship in other parts of the world, noting that the French carmaker lacked scale in Latin America and they could "we could help one another" there.

As for the possibility that SAIC would become GM's sole global partner, Akerson remarked that it is a work in progress. Auto consultant Michael Dunne said that Akerson’s comments are the clearest sign yet that GM is avoiding having to commit to SAIC as it builds its strategy for emerging markets, which offer the fastest sales growth and account for over half of the 81 million vehicles bought around the world each year.

SAIC is determined to become a major brand in the world, using its ability to produce vehicles for as low as $4,500 as a platform to take on emerging markets in Asia and beyond. SAIC, which builds no-frills cars in joint ventures with GM, also produces joint venture brands in China with Volkswagen as well as own brands like Roewe.

Topics: gm, ceo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Things are looking good at Rolls-Royce Motor Cars as the British luxury carmaker impressed by posting a six-percent jump in deliveries in 2016. Rolls-Royce’s 2016 deliveries of 4,011 units in...
by - January 15, 2017
British luxury sports car maker Jaguar is introducing a bevy of subtle updates to the 2018 Jaguar F-Type Facelift. However, these updates are so subtle that they are barely noticeable...
by - January 14, 2017
As far as Automobili Lamborghini S.p.A. is concerned, 2016 was a very fruitful year. This is all due to the fact that the luxury sports carmaker has delivered the most...
by - January 14, 2017
Earlier reports revealed that Infiniti was at the point of considering an electric car for the future. Prior to this, the company has in fact unveiled two concepts already--- the...
by - January 13, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries