GM Korea May Increase Exports To Australia
As Chevrolet slowly exits from the European market while Holden exits the production line altogether, General Motors is mulling over increasing exports to Australia out of South Korea.
Bloomberg reports the increase in exports is compensation for GM Korea losing as much as 15 percent to 20 percent of its production volume when Chevrolet closes the door on Europe at the end of 2015, and is roughly the same volume needed to fill the showroom floors in Australia while Holden winds down local production — and possibly itself — by 2017.
The Chevrolet experiment ultimately lost General Motors “millions” of dollars according to GM Korea CEO Sergio Rocha, though he expects the Australian market will more than make up for it:
With this money that we call ‘ loss avoidance,’ I’m going to have a lot of money in the next couple of years that we can invest in new products to be competitive in the local market and for exports as well.
Meanwhile, GM will focus on Vauxhall and Opel vehicles in their native markets, with Opel also providing select vehicles to the Australian market, beginning with the Cascada convertible.