GM shifts Australian division HQ to Singapore
BY DANIEL GARDNER | 15th Nov 2013
The Wall Street Journal reported this week that the head office of GM’s Consolidated International Operations division – which oversees Holden’s car-making business in Australia – was making the move to isolate the Chinese market from its other businesses.
The geographical shift will see about 120 staff – potentially including soon-to-be-replaced chief executive of Holden, Mike Devereux, who will soon take up a senior role in China – make the move from Shanghai to Singapore.
However, Holden corporate affairs manager Sean Poppitt said the shift in headquarters would not cause any ripples in Australia.
“(It) doesn't have any impact for Australian operations,” Mr Poppett said today. “All it means is (the) regional HQ will relocate to Singapore.” “Having a team in Singapore is a key step in CIO's transformation," CIO executive vice-president, Stefan Jacoby, said in a statement.
"It will help us to create a renewed identity for CIO and lead GM's umbrella strategy for the region. We are looking forward to being an important part of the Singapore business community."GM’s Chinese operations were spun off into a separate division from its international operations in August as it attempts to increase its share of one of the fastest growing new-car markets worldwide.
The reshuffle will leave about 250 GM employees based in China, and about 245 staff based at the global car-making giant’s Seoul office in South Korea.
GM recently announced its third-quarter result for the 2012-13 financial year, reporting a $US700 million result, well down on the $US1.5 billion it had earned in the previous year.
Part of that downward spiral in income was attributed to a pre-tax earnings drop for Consolidated International Operations – down to $US300 million from $US800 million for the same period last year.
Holden recently revealed its cost of making the Commodore and Cruze range of cars was $3750 higher than the GM average, making it difficult to run its Australian manufacturing operations at a profit.
It is currently in talks with the Australian government and unions to decide if it will commit to building the next generation of the Cruze small car in Australia from 2016.
