GM Accelerates Transformation of International Markets - Seite 2

"We do believe we have an opportunity to profitably grow the specialty vehicle business and plan to work with our partner to do that," he concluded.

GM also undertook a detailed analysis of the business case for future production at the Rayong manufacturing facility in Thailand. Low plant utilization and forecast volumes have made continued GM production at the site unsustainable. Without domestic manufacturing, Chevrolet is unable compete in Thailand's new-vehicle market.

GM Senior Vice President and President GM International Steve Kiefer said these decisions built on the announcement in January that GM would sell its Talegaon manufacturing facility in India; significant restructuring actions implemented in Korea; and investment in and continued optimization of South American operations.

"These are difficult decisions, but they are necessary to support our goal to have the GM International region on the pathway to growth and profitability," said Kiefer.

"GM is well positioned in our GM International core markets: South America, the Middle East and Korea."

GM International Operations Senior Vice President Julian Blissett said that as well as implementing plans in international core markets, GM was continuing to optimize partnerships in markets like Uzbekistan, by transferring assets and building strong supply chains to reduce costs in growth markets.

"In markets where we don't have significant scale, such as Japan, Russia and Europe, we are pursuing a niche presence by selling profitable, high-end imported vehicles – supported by a lean GM structure," said Blissett.

"We will continue to implement these critical business strategies, while delivering a dignified and respectful transition in impacted markets."

In Australia, New Zealand, Thailand and related export markets, customers can be assured that GM 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.

As a result of these actions in Australia, New Zealand and Thailand, the company expects to incur net cash charges of approximately $300 million. The company expects to record total cash and non-cash charges of $1.1 billion. These charges will primarily be incurred in the first quarter and continuing through the fourth quarter of 2020. These charges will be considered special for EBIT-adjusted, EPS diluted-adjusted and adjusted automotive free cash flow purposes.