03 August 2009

GM Production 2008


GM understandably had a sales slump in 2008, as it swaggered from one crisis to another. Therefore, for car/LCV sales, 2007 production of 9.2 million slid down to 8.15m for 2008. That's a worldwide market share drop from 13.3% to 12.3%, in production terms. GM has been moving production away from mature markets to emerging ones, which is cost effective. US plants now makes 28.6% of cars/LCVs, down from 37.5 in '05. China now accounts for 12.6% of production, up from 3.9% from '05. Germany is one established country that has held it's share over the previous four years, steady at 5.9%. Production by country listed as follows (OICA) (figures in ,000):

Country '08 ('07)
USA 2,333 (2,821)
China 1,027 (989)
Korea 800 (941)
Brazil 604 (577)
Canada 577 (933)
Mexico 508 (467)
Germany 482 (557)
Spain 427 (490)
Poland 322 (340)
Uzbekistan 195 (170)
United Kingdom 175 (196)
Russia 160 (109)
Belgium 132 (196)
Australia 118 (106)
Argentina 111 (115)
Thailand 104 (98)

So a wide spread of production locations. Of course, with European operations Opel/Vauxhall in the process of being sold, this will change things markedly. I could have seen benefits in GM staying as it is but it has never intergrated the US/Euro business as it should to save costs. GM is now so desperate, it has no time or money to do so.

The bottom line: Expect a lot more pruning before a very lean GM emerges.

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