General Motors Company (NYSE:GM) stated that it is winding up its Russian auto business and put it under its Germany unit to oversee it, in order to expand its loss making Adam Opel AG unit.
The latest move is appeared to be a victory for the new CEO of the company Europe ventures Karl-Thomas Neumann, who acquired its seat in March after leaving Volkswagen (VLKAY). The firm has re-concentrated on its European business following its losses of approximately $18 billion in 12 years.
While the Russia’s auto industry year has been expanding rapidly in current year, so the US car-maker unit is also flourishing there. The country auto industry increase approximately 20% in last year, to approximately 290,000 units, or a market share of approximately 10%.
Due to this reason and the better image of the company brand in the country has increase the demands from consumers for the company products especially in younger purchasers. General Motors Company (NYSE:GM) is offering models in the country contain Opel’s latest compact the Astra, sedan, and its sports utility products like Antara and the latest launch Mokka.
Karl-Thomas Neumann, who led the company Europe business, said this is a perfect step at proper time. Mr. Neumann also added Russia is the company’s third-biggest European market. Formerly, GM’s operations in Russia reported to the company Global Operations, located in Shanghai. All the company operations in Russia will be included into its Europe operation from the first day of next year. Including Opel, the company other brands in Russia consist of Cadillac and Chevrolet. General Motors Company share up 0.64% to $35.89 in last trading session.
Leave a Reply