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General Motors

General Motors (GM) is a US carmaker that was the world’s biggest, although Toyota is challenging it for the title. It was hard hit by the global financial crisis, needing a government bailout, but emerged from chapter 11 reorganisation in 2009, and held an initial public offering in 2010. It returned to profit in 2011.

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In blow to Shanghai, GM moves international operations HQ to Singapore

PUBLISHED : Wednesday, 13 November, 2013, 4:14pm
UPDATED : Wednesday, 13 November, 2013, 4:14pm

General Motors said on Wednesday it will move its international operations headquarters to Singapore from Shanghai in the second quarter of next year.

The shift comes after GM split its China operations from its international unit earlier this year, saying that would make it easier to focus on the Chinese car market, the world’s largest.

The move is likely to come as a blow to Shanghai, which has been trying to compete with the likes of Singapore and Hong Kong as a place for multinational companies to base their Asia headquarters.

GM said it had considered other locations for the relocation and looked into keeping the headquarters in Shanghai, but eventually decided on Singapore.

“It offers several advantages, including greater proximity to key … markets such as Asean and India, the Middle East and Africa,” said Lori Arpin, vice-president of communications at GM International Operations.

Many multinational companies are lured to Singapore’s shores by its competitive tax rates, use of the English language, skilled workforce and high standards of living.

Its headline corporate tax rate is 17 per cent, though companies that base their regional headquarters there can benefit from a lower rate if they meet certain criteria such as providing jobs and spending a certain level of money in the city-state.

Singapore, though, is one of the most expensive countries in the world in which to own a car and is not known as a major base for carmakers.

General Motors said it would have about 120 employees in Singapore who would oversee “key parts” of the company’s business in the Asia-Pacific region, Africa, the Middle East and Chevrolet and Cadillac Europe.

The new base will house some of its sales and marketing, finance, government relations, human resources, IT and legal functions.

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caractacus
Read the article. GM has not abandoned the China Market at all. It has moved HQ, probably because it does not trust the corrupt Chinese authorities who periodically whip up a publicity campaign targeting foreign businesses. The rule of law does count even to big corporations. This trend is bound to continue.
JC
I wonder if you would be saying the same thing if GM had shifted its HQ to HK? Polluted air, not so friendly people compared to the Taiwanese and well, proximity to Southern China? Let's make it clear here. The International HQ in Singapore will be looking after a geographical expanse (ex China) that is in very much in sync with far more cosmopolitan, international and multicultural Singapore compared to Taipei or HK. Geographically, Singapore is right smacked in the middle of East Asia and West Asia/Africa. Furthermore, Singapore has free trade agreements with many economies, unlike Taiwan and HK. Unfortunately, due to Taiwan's diplomatic isolation, there is a limit to what it can offer to MNCs. Get this straight, Asia is not China
crbfile
I'm sure there will be a price to pay for abandoning the largest market in Asia.
Also, typical clueless Westerners - Taiwan would have been a 10x better choice.
fresh air, friendly people, proximity to the mainland....
 
 
 
 
 

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