One of the hallmarks of the new General Motors Co. is swift decision-making, and the decision where to base the international operations was made fast.
"It didn't take us more than about a minute to decide where it should be," said Nick Reilly, GM executive vice president and new head of international operations.
He and CEO Fritz Henderson agreed on Shanghai during a phone call. Reilly was already stationed there as director of GM's Asia Pacific operations.
But the choice primarily reflects the U.S. automaker's focus on Asia, and on China in particular, as the most promising region.
"If you look at the global market, Asia and China will be the locomotives of growth," said Michael Dunne, managing director of J.D. Power and Associates in China.
China is on track to surpass the United States to become the world's No. 1 auto market this year. In the first nine months of 2009, 9.16 million light vehicles were sold in China, compared with 7.8 million in the U.S.
China has been a success story for GM and its venture partner, Shanghai Automotive Industry Corp. Together, they have carved out a leading position in the Chinese market, far ahead of Ford Motor Co. and Chrysler Group LLC and their partners.
"Our 50-50 relationship with SAIC has been going now for about 12 years," Reilly said. "They have gained from it. We have gained from it. We work at it very hard, and we respect each other."
The ventures are profitable, he said, "and we're likely to expand that relationship."
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