General Motors has announced organizational changes that call for a combination of all of its weakest global markets into one business unit. The move will reduce expenses for GM and allow the automaker to focus on profitable markets.
Specifically GM is combining its Southeast Asia, India, Oceania and South America divisions on Jan. 1, 2018. The new combined unit will be led by the current president of GM South America, Barry Engle.
“Our strategy to refocus our traditional business operations to free up the resources and financial power needed to really step into the next chapter of the automotive industry,” executive vice president of GM’s International Operations, Stefan Jacoby said.
GM is hoping this move will lead to profits in Southeast Asia and South America; two markets that have been money-losers for the company. This move is also freeing up capital to invest in new vehicle development.
This consolidation move is another step in GM restructuring its international operations to reduce expense and speed up development of new technology and vehicles. This follows the company’s recent sell of its European operations to French automaker PSA Group; effectively leaving GM with no market presence in Europe.