General Motors (NYSE: GM) announced Thursday that it will stop selling cars in India, as well as sell its South Africa business to Isuzu Motors Ltd. The famous car manufacturer explained that these decisions were made to focus capital in regions that provide the potential to contribute to stronger financial performance.
“These actions will further allow us to focus our resources on winning in the markets where we have strong franchises and see greater opportunity,” GM President Dan Ammann said in a statement, as reported in The Detroit News.
General Motors still has a plant in Talegaon, India, which it will continue to use for export purposes only. The vehicles produced in the plant will be exported to Mexico and Central and South America. GM said it will withdraw its global Chevrolet brand from India and South Africa by the end of the year.
According to the Detroit News, GM Chairman and CEO Mary Barra said in a statement, “As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company. 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. Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term.”