The new GM looks abroad

Jim_Higgins · 2010-08-26T01:29:03+00:00

Note the 3rd and last paragraphs. Definitely not the company of the Dinah Shore commercial- Dead as a doornail.The new GM looks abroad -- What will likely be the defining characteristic of the new General Motors has gone largely unnoticed in the analysis of its initial public offering prospectus filed earlier this month: the degree to which it is no longer a North American-centric company.Already 72% of the company's vehicle sales already are generated outside the U.S. and that number is certain to grow larger in future years.As GM moves more of its business overseas, it will have major consequences for the management of the company and its culture, the direction of its product development, and the allocation of capital.With opportunity comes risk, of course, and operating in a large number of different regions and countries exposes GM to political and economic risks, as well as foreign regulatory requirements that are subject to change. Among those cited in the prospectus: economic tensions between governments, political instability, natural calamities, war, and terrorism.Overseas growth could also lead to clashes with joint-venture partners, strains on corporate culture, and raise knotty issues about branding. A recent brouhaha over the use of Chevrolet's traditional U.S. nickname, Chevy, in overseas markets may give only a hint of what is to come.GM's current international tilt is the result of a strong offshore push begun in the mid-90s under then-CEO Jack Smith. While Smith's strategy of buying stakes in overseas manufacturers like Suzuki and Saab failed, he understood the importance of the rest of the world from his experience running GM Europe, and it has paid off in GM's strong position in developing markets.Nearly 40% of GM's unit sales now come from countries with emerging economies, notably the BRIC countries of Brazil, Russia, India, and China, which not so incidentally are also experiencing the industry's highest volume growth.GM claims the number-one...

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Canuck57 16 years ago

Which i why governments wild jump in debt-spending hasn't been seen by the middle class at all.

It is also why Reaganomics worked and Obamanomics corruption fails. Obama is bailing out super rich and corrupt banking. Reagan simply and ultra efficiently left productive people with more of their own money. While Obama is stealing the middle class worker blind saddling them with more massive government ponzi debt.

Criminal actually.

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Canuck57 16 years ago

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Canuck57 16 years ago

Yep, I agree with that. GM was one of the funnels for the cash too. Now that its usefulness is over as a cash siphon they want to dump the turkey.

Corruption is sure deep in DC.

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Mike 16 years ago

You certainly are entitled to your opinion, no mater how convoluted it may be LOL

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Mike 16 years ago

Obviously you did not search the US Commerce Department site if that is what you still chose to believe. What you sited are the sales figures not the point of origin and all of the midget cars and Luxury models are made in Japan, dummy

Please name the Toyota Motor Company vehicles that you think are made in the US. You can even include those that are only assembled in the US of mostly imported parts and materials like the Camry.

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Mike 16 years ago

The average US buyer TODAY, does not buy the less expensive midget or small cars, they buy midsize cars.

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Mike 16 years ago

Once again our friend Canuck57 is telling us the sky is falling but GM is STILL the number one seller in the US, year to date. LOL

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Mike 16 years ago

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Mike 16 years ago

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Mike 16 years ago

Once again our friend Canuck57 is telling us the sky is falling but GM is STILL the number one seller in the US, year to date. LOL

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Mike 16 years ago

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Clive 16 years ago

In message , Jim_Higgins writes

Yes the second paragraph sums up the situation nicely, but this time, if the US puts up trade barriers, I'm sure Europe, Russia and the rest of the world will pick up the slack with the rest of the world to service China and India.

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hls 16 years ago

You seem to have missed the fact that we are already in deep doodoo. We are looking for the shallowest end of the cesspool

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hls 16 years ago

I dont think so, Canuck. I have lived in countries where importation controls were in effect. You still have to have cars, and other things, but you get used to paying a lot for them.

Our "trading partners" already have ways to control imports from us. And they can do it without taxes.

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Clive 16 years ago

In message , hls writes

Yes, Japan doesn't allow car ownership unless the owner has a parking space or the vehicle is so short that if it's not made in Japan, it can't be bought.

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Canuck57 16 years ago

Plus if GM needs to double an already inflated price using protectionism there will be a whole lot less domestic buyers.

In fact this phenomenon has already stated. More and more people are locating themselves closer to work as to walk to work. Negating the need for a full time vehicle.

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Rodan 16 years ago

More and more people are locating themselves closer to work as to walk to work, negating the need for a full time vehicle. __________________________________________________________________

There will be no need to drive long distances, because there will be no big, sprawling manufacturing plants to drive to for work. They will all have been relocated to foreign countries.

We will abandon our dreams of being suburban homeowners and become in-town rental apartment dwellers. Our needs for food, clothing and entertainment will be within walking distance. Any transportation needs will be met by public buses or trains, on schedules set by the government.

Welcome to the new year: 1800.

Rodan. __________________________________________________________________

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