Global news

incarsmagazine Team

BANGKOK February 17 2020

General Motors (GM) will cease sale of Chevrolet vehicles in Thailand’s new car market by the end of 2020, but will continue to support existing Chevrolet customers for ongoing aftersales, warranty and repair work through a national network of Authorized Service Outlets. 

GM Strategic Markets, Alliances and Distributors President, Andy Dunstan, said the withdrawal of Chevrolet from the domestic new vehicle market followed GM’s decision cease vehicle and powertrain production at its Rayong manufacturing facilities. 

“GM acknowledges the impact this decision has on our people and our partners. We are committed to treating our people, partners and stakeholders with dignity and respect throughout this transition,” said Dunstan.

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  “GM explored a range of options to maintain Chevrolet in Thailand’s new vehicle sales market. Regrettably, without a domestic manufacturing footprint, it is not viable for Chevrolet to compete in the Thai market.”

Dunstan said GM had undertaken a detailed analysis of the business case to allocate a new vehicle program to the Rayong site. However, low plant utilization, forecast domestic and export volumes impacted the business case significantly. 

“Our decision to wind-down manufacturing and sales operations in Thailand is consistent with GM’s global strategy and our internal capital allocation framework,” said Dunstan.

“It does not reflect the capability and talent of our Thailand team and our dealer partners, who I thank for their contribution to GM and the Thai automotive industry. I also want to thank the Thai Government for its long-standing support of our operations and for sustaining a highly competitive business environment in the market.” 

GM and Great Wall Motors (GWM) have signed a binding term sheet for GWM to purchase the Rayong manufacturing facilities. Both parties are targeting to close the deal in the fourth quarter of 2020.

GM Southeast Asia President, Hector Villarreal, said the company was committed to supporting employees and customers, and will implement an orderly transition for customers, employees, dealers and suppliers. 

“We will support our employees impacted by this decision with a severance package above Thai labor law requirements,” said Villarreal. 

“Our dealers will also be offered appropriate transition support in recognition of our long partnership, as well as the opportunity to transition their businesses to Authorized Service Outlets.” 

“We are equally committed to continuing to look after our valued customers. Chevrolet owners can rest assured that we will continue to honor all vehicle warranties and provide aftersales support through a dedicated aftersales network in Thailand. We will work closely with our dealer partners, who will also be offered the opportunity to transition to become authorized service outlets.”