GM will incorporate its Russian operations into its European division

General Motors executives have devised a new strategy to pull its European division out of the red. It will consist of having its operations in Russia become part of GM Europe, since right now they are managed by a company called GM International Operations, based in Shanghai. In this way, the division will be able to benefit more directly from the growth of the Russian car market.

According to analysts, this country will overtake Germany within five years as the European nation where the most new cars are sold. The key is that Russia is a very important market for both Chevrolet and Opel. The former is the fifth-largest brand selling vehicles there, and for the German brand, although it ranks twelfth on the lists, Russia is its third-largest market.

Cadillac would also come into play, since it is part of GM’s European operations. Its sales in Russia have recently dropped 32% to 1,124 units, but any small help will be welcome for the European division of the Detroit giant. Once this integration of the Russian business is complete, GM will be able to add those sales to its European total and show less alarming results.

For the time being, General Motors will change the management of its Russian business. From November 1, Andy Dustan, currently head of sales and operations for Central and Eastern Europe, will take charge of it. And the executive he is replacing, Jim Bovenzi, will move to headquarters in Detroit, where he will become the new global location strategy executive director.

Source | Automotive News