Bloomberg overnight report from overseas:
GM Expects to Outperform Asia-Pacific Market in 2009 (Update1)
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By Tian Ying
Dec. 23 (Bloomberg) -- General Motors Corp. expects to outperform the industry next year in the Asia-Pacific region, its second biggest sales area, on the addition of new models.
“We have to do a little better than the market because we have some important introductions,” Nick Reilly, GM’s Asia- Pacific president, said by phone today from London. The carmaker is seeking “low single-digit growth” in the region, while overall sales may be flat at best, he said.
GM plans to introduce two new models in most Asian markets next year and upgrade other vehicles, Reilly said. The carmaker is counting on U.S. government loans and on sales in emerging markets such as China as it seeks to avoid bankruptcy after a collapse in U.S. and European demand.
“Clearly, it is difficult time,” Reilly said. “I still would expect us to be able to get through this with a reasonable profit performance” in Asia-Pacific.
The carmaker opened a new plant in China last week and is building factories in India and Thailand. The expansion contrasts with the U.S., where GM is suspending production because of waning sales.
GM doesn’t plan to cut employees in the Asia-Pacific region, Reilly said. It’s giving extra days off in some plants in South Korea and Thailand, he added.
