Thursday, March 17, 2011

United States, GM going global less dependent on

Dealing with automotive name tags, more Americans as General is not one clear Motors largest marque, a brand that long urged to think buyer "Hot dogs, Apple Pie and Chevrolet."

But not quite as American feel these days Chevy.

The famous Chevy bowtie seems everywhere, pop from Berlin to Beijing. A full 45 percent the brand sales came from outside the United States in the last year, and Chevy wants to increase its share of international markets in the year 2011. Chevy is a dominant force in Latin America and one of the fastest growing name in Europe and China.

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But seems as Chevy to GM grow global brand, it is not the burden entirely on its own. While humiliated GM have eliminated half of its North American brands which could to arise from the family in 2009, it was actually expanded the number of trademarks it worldwide operates, most recently the Baojun create brand - or "Treasured horse" - for the Chinese market.

The establishment of the brand reflects significant shift of the GM strategy. Half a century before, former Chairman of the GM "Engine" Charlie Wilson said Congress, that for years thought I which for the country was good for General Motors and vice versa. "" The comment is often misquoted as "what is good for General Motors is good for America." However formulated, which was a picture of GM indelibly with American manufacturing is connected.

No more. About two-thirds of the company's sales in 2010 from overseas markets, notes analyst Ed Kim, automotive research and AutoPacific marketing company came.

"GM will have them always less dependent on the US market, and the need," said Kim.

While GM be tarnished image in the United States over the years has as its fortunes have declined, it is a different story in much of the rest of the world (maybe with exception of Europe, where massive losses led almost the automaker a majority stake in the Opel subsidiary sell), End of 2009).

The Opel brand is still headache for GM and Chevy is elsewhere some Opel take up losses in Europe and the sales grow, especially in China. In fact, all the various GM brands have a hard time to keep up with the demand in the booming Asian nation.

While not the first Western auto manufacturers put a factory behind the curtain bamboo, GM was one of the early players and what was a controversial decision at the beginning of the new millennium is now considered a brilliant bet. In the last year GM was the first car manufacturer, to sell more than 2 million cars in China sell 2.3 million vehicles, and if the economy remains solid some analysts believe that it soon the 3 million mark will be hit.

GM's largest brand in China - in the fact that most car is brand in the Chinese market - seemed Buick, a name that until recently for the automotive scrap heap back are in North America. But it survived the post bankruptcy brand extinction, said Ed Welburn, GM Design Director "because it would have stained Buick's image [in China] if we eliminated the brand back home."

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So far the growth in the Chinese market has come most from the economically fertile Crescent of Pacific coast, but this trend is likely because the smog and traffic clogged cities like Beijing now slow target, automotive growth to shift. The Baojun brand was specifically go after consumers in the second and third tier cities in the Chinese inner created.

With 20 new products, which is under its different brand names, GM bets it its current 13 percent stake in the Chinese market clearly can - increase where it already sold more vehicles when it sold in the United States.

Also the pedal pushes the car manufacturers, the metal into other major emerging economies, in particular Brazil, Russia and India, which along with China, are known as the "Bric" markets.

Restore with the US market at a relatively moderate pace - and consumer demand strong incentives for them in showrooms curl - GM officials admit that they have led reflection to use their limited resources. Against the GM Chapter 11 filing, former GM Vice President and "Car czar" Bob Lutz acknowledged that probably more emphasis would put the automaker on overseas operations.

This is particularly evident with the Buick brand, where increasingly key product development decisions on GM Chinese Central, be made in Beijing. Much of the small car development work for Chevrolet, and other brands GM has moved what used to short or the old Daewoo brand in South Korea are called.

The shift reflects the GM move for global platforms. It is a strategy which adopted most car manufacturers - American, Asian and European. Rather than a product specifically for each market develop, GM global platforms, works the in, say, be released can China, Germany, and the United States.

This does not necessarily means that cars are the same. Can notable updates to regional demand reflect it. But the approach helps to build economies of scale.

On the question whether attention is away from the US market with a focus on a global strategy, GM is Vice President Steve Girsky States that "each market an own different tastes and desires will have." "The challenge for us is to meet those needs during communizing as possible customize as many parts and components."

The global approach will help expand its presence in new markets, GM also you "where we want to remain strong," said GM CEO Dan Akerson recently. The focus on global products a disadvantage but can, in particular, if you delay by other programs.

"As a result of bankruptcy proceedings, we are about 12-15 months behind where we would in new product launches in this country, his" Akerson recently recognized.

The Chief Executive approved developed Flash, a spending to fill, what a real product could be hole in the United States in the next few years, but it might be difficult to catch up, GM admit officials. If so, the carmaker is wind to be dependent on the much more foreign markets such as China, which pick up the slack.

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