Tomahawk, WI 11/14/2013 (BasicsMedia) –  General Motors Company (NYSE:GM) has announced the shift of its international office from Shanghai to Singapore. While this move may seem like denying China the significance it deserves as the world’s fastest economy, shifting the office elsewhere will allow GM’s China operations more autonomy which is important for its growth. The new office in Singapore will staff about 120 employees and will manage the Detroit automaker’s operations in Europe, ASEAN region, Middle East, India and Africa. These are vital emerging markets that the company apparently seeks to enhance its foothold.

That China deserves special focus from the automaker can be seen in how the company’s sales in the marked have soared in recent times, coming to oust the U.S. from the top slot as world’s largest car market. Currently China accounts for GM’s 30% of car sales. According to the latest quarterly earnings, General Motors Company (NYSE:GM)’s second largest source of profit is the international business, while the North American region remains its largest profit zone. The international market earned GM $27.69 billion in revenue and $2.19 billion in profit, this is in pretax figures. In comparison, the North American region brought in $94.60 billion in revenue and $6.95 billion in pretax profit. Among the international businesses, China occupies a special position in GM’s growth agenda. Even as its international offices shift bases from Shanghai to Singapore, China will remain a huge operation base for the automaker with more than 250 employees.

Increasing sales and reducing cost has been at the core of GM strategies and the automaker seeks to improve its bottom-line. Broadening presence in China with a more focused team appears to be the answer to the growing foray into the market by multinational carmakers. Ford Motors has equally been making inroads into this promising market. However, for GM, there is even more juice beyond China. The surrounding emerging markets have also proven to be increasing their car purchases.

GM’s presence in African has been growing steadily and fast enough to warrant the regain increased market attention. The car models to the global markets are also expected to increase.  India is yet another market of particular interest for automakers not just GM considering the countries fast growing economy. So is the Middle East and parts of Europe.

Electric Car Factor

While the automaker is ambitious in its new market hunt, the aspect of increasing competition is concern. GM’s car models are machines which need no introduction in most markets around the world, but the automaker is facing intensified competition domestically and internationally from such other big names in the auto industry such as Ford Motors, Toyota and Volkswagen. Another growing threat to traditional cars generally is Tesla’s all-electric cars which promise environmentally friendly vehicles. If the reception of the electric cars in the U.S. and internationally is anything to go by, it is fair to conclude that they pose real threat to the traditional car market business. Moreover, the cars attract subsidies which make their uptake quite easy particular in the U.S. Also, the sales strategy which allows Tesla to sell its car directly to customers also gives the company market advantage and higher margins. It therefore goes that General Motors Company (NYSE:GM) would have to balance fair pricing and better sales force to squeeze the juice of the car market.

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