General Motors pulls Chevrolet out of India and South Africa

Shares in car titan General Motors Co (NYSE: GM) lost ground in pre-market  as it unveiled plans to streamline operations  – by pulling the Chevrolet brand out of India, South Africa and East Africa by the end of 2017.

The group says it will save it $100mln a year but will take a hit of $500mln in the second quarter to make the changes.

Earlier this year, General Motors exited the European market, selling its Opel and Vauxhall brands to PSA Group.

At the time GM’s chairman and chief executive Mary  Barra said: “We believe this new chapter puts Opel and Vauxhall in an even stronger position for the long term..”

Now, Barra has said the company wants to focus on markets that will help its profitability and competitiveness

It also says it will invest more on mobility projects like autonomous vehicles.

The company will retain its assembly plant in India but only make vehicles for export. It is selling a plant in South Africa to Isuzu Motors.

Only two years ago, the group said it would pump $1 billion into its India operations, but that has now been abandoned.

Snares lost 0.59% to $32.23.

Story by ProactiveInvestors