GM boosts manufacturing, sales operations throughout the region

Martin Apfel, president of GM’s Southeast Asia operations, said last week that the company has grown in the region by expanding its manufacturing footprint, suppliers’ footprint, and retail and dealer network.

He made the remark during the grand opening of Chevrolet’s exclusive dealership in Phnom Penh, Cambodia. United Auto Trading, an affiliate of Goodwill Trading, one of the largest importers and distributors of motor vehicles in Cambodia, will distribute the Chevrolet brand in that country, including parts, and provide after service.

The 2,000-square-metre flagship dealership started operations in February. Chevrolet’s product line-up in Cambodia comprises the Spark, Cruze and Captiva imported from Korea; the Colorado imported from Thailand; and the Tahoe imported from the United States. Models scheduled for sale later this year are the Malibu and Trailblazer.

The dealership has a 950sqm showroom and a 1,050sqm service area with 10 bays and seven lifts to support technical maintenance and servicing.

"Cambodia is developing fast and we are here today because the entire region promises so many opportunities for growth," Apfel said.

The Cambodian auto industry is expected to grow by 10-15 per cent this year. Of the total volume, 30-35 per cent is expected to be populated by pickup trucks like the Chevrolet Colorado, he said.

Gustavo Colossi, vice president of sales, marketing and aftersales for Southeast Asia, said GM’s long-term objective is to be one of the major players in the region. In Cambodia, Chevrolet’s goal is to capture 10 per cent of the market this year.

Tong Norm, chairman of United Auto Trading, said the local market is small but growing rapidly

Chevrolet launched its first dealership in Laos last December. In Thailand, it plans to have 120 dealerships in place throughout the country this year.

GM, through its Chevrolet nameplate, sold 21,889 vehicles in Southeast Asia last quarter, up 17 per cent from the first quarter of last year.

Apfel said one key factor in enhancing Chevrolet’s business is the people that it places its trust in – people with experience who are known as honest, transparent and successful businessmen, who have grown their own business.

The other important thing is service, focusing on transparency, honesty and making sure customers understand what needs to be done and will stay with them for a long time. The company this year would buy auto parts worth about US$2 billion (about Bt59 billion) from its suppliers in Southeast Asia this year, compared to just $300 million three years ago.

"The umbrella strategy is ‘build where you sell, and source where you build’," he said.

In Indonesia, GM early last week opened its $150 million Bekasi plant 16 kilometres east of Jakarta, which is fully owned by General Motors Indonesia. The facility employs 700 workers.

The plant makes the Chevrolet Spin, a sub-compact multipurpose vehicle. Its production capacity is 40,000 units a year. About 80 per cent of the Spins from this plant will be sold in Indonesia and the rest to Thailand and the Philippines.

Indonesia is one of GM’s fastest growing markets, said Tim Lee, GM vice president for global manufacturing and president of international operations.

Apfel, who also joined the Bekasi plant opening last week, said that for the Southeast Asian auto industry, the long-term trend is growth. The more GDP grows, the more people become part of the middle class and can afford vehicles. All forecasts also indicate that the regional economy would grow at 5.5-6 per cent per year over the next 10 years. There might be bumps on the road and possibly not every country would show that growth every year. But on average, the region will grow.

The growth of the auto industry has benefited other industries. Every job in vehicle manufacturing creates seven to 12 jobs in the suppliers’ industry, in dealerships and in services.

"So the multiplier effects of the auto industry are immense," he said.