General Motors to wind down operations in Australia, New Zealand and sell Thai factory to China’s Great Wall Motors

General Motors will wind down its sales, design and engineering operations in Australia and New Zealand brand by 2021

The carmaker will sell its manufacturing plants in Thailand and India to China’s Great Wall Motors

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Published: 12:29pm, 17 Feb 2020Updated: 12:29pm, 17 Feb 2020

General Motors is retreating from more markets outside the United States and China, saying on Sunday that it will wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021.

It also said China’s Great Wall Motors had agreed to buy GM’s Thailand manufacturing plant, a transaction expected to be completed by the end of 2020.

In rearranging its global operations, GM is accelerating its retreat from unprofitable markets, becoming more dependent on the United States, China, Latin America and South Korea.

GM Chief Financial Officer Dhivya Suryadevara told analysts during a February 5 presentation that restructuring GM’s international operations outside China so they produce profit margins in the mid-single digits “does represent a US$2 billion improvement” compared with 2018’s.

Ahead of that presentation, GM forecast flat profit for 2020 and reported a better-than-expected fourth-quarter earnings in the face of a US$3.6 billion hit from a 40-day United Auto Workers strike.

With the proposed sale of its Thailand plant to Chinese carmaker Great Wall, GM is giving up an opening to expand its operations in Southeast Asia.

GM is “focusing on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility,” especially in electric and autonomous vehicles, GM Chair and CEO Mary Barra said in a statement.