Once world's largest automaker, GM retreats overseas as other companies take the lead

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Since taking the helm 6 years ago, CEO Mary Barra has followed a strategy that might be referred to as one of strategic retrenchment, abandoning a number of once-critical markets, including Western Europe, India and, most recently, Russia.

But GM appears to be rethinking the benefits of ever-increasing volume, especially if it comes from markets that just don't deliver on expectations. Russia is just the latest example.

But GM's timing couldn't have been worse. Russian car sales peaked that same year at 3.1 million and what began as a modest downturn soon turned into a rout. With the country's economy hammered by Western sanctions, sales plunged to just 1.4 million in 2015. After staging a modest rebound, sales again are tumbling – the numbers down 6.4% for the first 11 months of this year from 1.8 million vehicles sold in 2018.

The same year, GM pulled out of South Africa and closed its dealer network in India – though it continues to produce vehicles on the subcontinent; The decision surprised few considering GM had been losing money in that market for two decades and said it saw little upside potential despite repeated restructuring efforts.

 

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This is the state of pretty much the entire US. Apart from a dozen companies, rest are all vanishing from the world, and slowly from US as well.

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Standby while all hell breaks loose

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