2. GM plans to introduce the Chevy Spark and the Chevy Cruze, two fuel-efficient models made in...
Question:
2. GM plans to introduce the Chevy Spark and the Chevy Cruze, two fuel-efficient models made in China, in the United States.
How do you think the cars will be received? What advice would you give management about this strategy?
For General Motors, 2009 was a year to remember. A global recession—triggering massive layoffs, widespread unemployment, and faltering consumer confidence—sent car sales plummeting. Recognizing that GM’s demise would create a catastrophic ripple effect in the American economy, the federal government provided a $50 billion bailout to keep the giant automaker afloat.
But 2009 also had one bright spot: GM’s performance in China.
GM China is on a tear. The world’s largest and mostly untapped market for automobiles, China saw continued economic growth despite a worldwide recession—a claim few nations can make.
GM has had operations in China for decades. Over time, the business grew to comprise nine joint ventures, two wholly owned firms, and 32,000 employees making automobiles, trucks, and vans for a burgeoning Chinese middle class.
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