General Motors stated it could shut down its Australian and New Zealand operations and sell a Thai factory in the newest restructuring of its global enterprise, costing the U.S. auto manufacturer $1.1 billion.
The steps will speed up GM’s retreat from unprofitable markets, making it more dependent on the U.S., China, Latin America, and South Korea.
They come after the carmaker told analysts this month that overhauling GM’s international operations outdoors of China to produce revenue margins in the mid-single digits would signify “a $2 billion improvement” on two years ago.
GM has estimated a flat revenue for 2020 after a difficult 2019 and is dealing with bloating interest in EV competitor Tesla.
“We are concentrating on markets where we have the right methods to drive robust returns, and prioritizing global investments that will drive progress in the future of mobility,” GM Chairperson and CEO Mary Barra mentioned in an announcement late Sunday.
The latest modifications – a continuation of GM’s withdrawal from Asia that started in 2015 when it declared it could cease making GM-branded automobiles in Indonesia – will result in cash and non-cash charges of $1.1 billion.
About 600 jobs shall be lost in Australia and New Zealand, while nearly 1,500 jobs would be affected by the sale in Thailand.
Barra has prioritized revenue margins over sales volume and global presence since taking over back in 2014.
In 2017, she sold GM’s European Opel and Vauxhall companies to Peugeot SA and exited South Africa and other African marketplaces.