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Jordan Perch loves automotive innovation and that is his ultimate passion. He is managing the resourceful DMV.com and is an active contributor to numerous consumer and automotive blogs.

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General Motors to Spend $5 Billion to Develop New Models for Emerging Markets

Posted November 18, 2015 2:52 PM by Jordan Perch

Although General Motors has been seeing pretty good sales figures in North America and Western Europe lately, the U.S. automaker hasn't been too successful in emerging markets, which have been the focus of almost all major global manufacturers in recent years. GM is now looking to change that, with a plan to invest heavily in development of a new family of vehicles that will be specifically designed to cater to the needs of consumers in markets like China, India, Brazil and Mexico.


The Detroit-based automaker has announced that it intends to spend $5 billion to create an all-new vehicle family that should help the company expand its business in growth markets.


"With a significant majority of anticipated automotive industry growth in 2015 to 2030 outside of mature markets, Chevrolet is taking steps to capitalize on that growth," said General Motors President Dan Ammann. "Strengthening Chevrolet's position through this major investment is consistent with our global strategy to ensure long-term profitable growth in the markets where we operate."


The new vehicles will be sold under the Chevrolet brand, and are expected to hit showrooms in 2019. They will include compact cars and SUVs. They will be built in Brazil, Mexico, China and India, and will share an architecture that will be developed in collaboration with Chinese automaker Shanghai Automotive Industry Corp (SAIC). The cars that will be manufactured in one of these countries will be sold in other developing countries across Southeast Asia and South America, as well. The company expects to sell about 2 million vehicles annually in the targeted emerging markets, which would be equal to 20% of its current global sales.


"We have taken many decisive actions over the past few years to restructure our business in specific markets as part of our plan to become a more customer-focused company and to generate superior returns on our owners' capital," said Ammann. "This growth initiative is the next important step toward our goal of building the world's most valued automotive company."


There are no details on the specs and features these new vehicles will have, but they will surely be filled with sophisticated technology that will offer greater connectivity and improved safety, as well as better fuel economy. This is because GM has realized that consumers in emerging markets nowadays demand the advanced vehicle safety technologies and connectivity features that are available in the more mature markets.


However, GM will face a few challenges as it tries to ensure a bigger presence in rapid-growth markets. For starters, the new vehicle family will have to be able to meet regulations in various countries that have different safety and fuel economy standards, which will not be a simple task. Also, in order to gain a strong presence in China, Brazil, India and Mexico, it will have to fight some of the world's largest automakers, including Toyota, Volkswagen and Ford, which also have serious plans for expanding in these countries and are investing in programs aimed at developing new vehicle models that will cater to the needs of consumers in these specific markets.

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#1

Re: General Motors to Spend $5 Billion to Develop New Models for Emerging Markets

11/18/2015 5:37 PM

Maybe they can market a Nova in Latin America.

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#2

Re: General Motors to Spend $5 Billion to Develop New Models for Emerging Markets

11/18/2015 8:32 PM

Looks like they have plenty of cash since THEY SCREWED MANY TRUSTING AMERICANS out of their life savings, all while their executives were paid millions of $ dirty money.

F>^K GM!

Why don't they pay their debts to their loyal stockholders????

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#3
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Re: General Motors to Spend $5 Billion to Develop New Models for Emerging Markets

11/19/2015 1:37 PM

The Gubmint screwed the bond holders in favor of the unions, not GM.

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