GM to Withdraw “Chevrolet” from Thai Market by Year End, Losing 1,500 Jobs at the Plant!

General Motors has announced that it will sell the manufacturing plant in Rayong, which would lead to a loss of 1,500 jobs and a cease production of Chevrolet in Thailand by the end of 2020.

 

General Motors (GM) said that the company had signed a binding agreement with China’s Great Wall Motor to sell a car plant located in Royong, Thailand.

This has shown that GM is retreating from more markets outside of the United States and China, giving up on the expansion strategy in Southeast Asia markets. Moreover, GM also announced that it would wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021.

 

GM said that the company wants to rearrange its global operations by retreating from unprofitable markets.

The company is “focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility,” said GM’s Chairman and CEO Mary Barra said in a statement.

According to GM, the plant in Rayong has low utilization and forecast volumes have made continued GM production at the site unsustainable. The sale to Great Wall would leave its plant, which produces Chevrolet, being unable to compete in Thailand’s market.

GM stated that customers in Australia, New Zealand, Thailand and related export markets, can be assured that the company will honor all warranties and continue to provide servicing and spare parts. Local operations will also continue to handle all recall and any safety-related issues, working with the appropriate governmental agencies.

Yahoo has cited GM’s statement saying that the changes will lead to cash and non-cash charges of $1.1 billion, as well as the loss of 1,500 jobs in Thailand. The company assured that employees would receive compensation at a higher rate than indicated in the Thai labor law.

 

Great Wall, who had also purchased GM’s plant in India in January, is one of China’s biggest SUV makers, said it will sell vehicles from the Thai manufacturing plant in Thailand.