General Motors (GM) announced Thursday that it will stop selling Chevrolet vehicles in India by the end of 2017 and its manufacturing facility in the country will focus on making vehicles for export to Mexico and Central and South American markets.
This is part of GM's efforts to restructure international markets so as to focus its capital and resources on business opportunities expected to deliver higher returns.
Other moves GM has taken in the restructuring include selling its South Africa business to Isuzu Motors Ltd and phasing out the Chevrolet brand in the country by the end of 2017.
It will also withdraw sales of Chevrolet brand from East Africa and streamline its regional headquarters office in Singapore.
After the restructuring, the Detroit-headquarterd automaker expects to realize an annual saving of about 100 million U.S. dollars.
"As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company," said GM Chairman and CEO Mary Barra in a statement posted on the automaker's website.
"We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility. It is learned that except China, GM's International Operations have been a drag on the automaker's earnings for years.
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