General Motors to Chop Off Holden Brand

American multinational General Motors Co (GM) has announced that it will be chopping off the Holden Brand from its portfolio by the end of 2020. Further, the automaker will discontinue engineering activities, design and sales in Australia and New Zealand in what it terms as rearranging its global operations.

In addition, General Motors confirmed it will be selling its car manufacturing factory together with an engine plant both in Thailand to China based Great Wall Motor Co Ltd (SHA:601633). This transaction will be finalized by the end of this year.

Earlier in the month, GM’s Chief financial Officer Dhivya Suryadevara, presented the company’s international restructuring plans which would propel the company to increase profit margin by single mid digits.

According to the restructuring plan, GM is retreating from unprofitable markets to enable the automaker concentrate more on its promising markets which include the United States, China, South Korea and Latin America.

“General Motors is focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility especially in electric and autonomous vehicles,” said GM Chair and CEO Mary Barra.

GM pointed out that these restructuring alignments will result to cash and non-cash charges amounting to $1.1 billion, additionally around 1,500 jobs will be lost in Thailand, other 828 jobs will also be lost in New Zealand and Australia combined.

Barra ascended to the CEO position in 2014 and since then the CEO has been pushing for better profit margins over global presence and sales volumes.

To push her agenda, after assuming office, the CEO decided to pull out GM from Indonesia, India and Vietnam.

Nevertheless, last month GM sold its factory in India to Great Wall Motors. (SHA: 601633) in a deal expected to close later in the year.