GM operations outside N. America report to Shanghai

Shanghai, September 1 (Gasgoo.com) One aspect of General Motors' management reorganization that went widely unnoticed was a shift in power from Detroit to Shanghai. Except for Opel, all GM operations outside North America answer to executives in Shanghai, the Detroit Free Press reported yesterday.

Nick Reilly went from overseeing GM's Asia operations based in Shanghai to overseeing all of the automaker's operations outside of North America, with the exception of Germany-based Opel, which is up for sale. So while GM's Canada and Mexico operations report through the United States, most of the rest of the world reports through China.

As GM looks to sell off majority control of its Opel division in Europe, the Detroit automaker will likely draw on lessons from its China operations, where it is partnered with Shanghai Automotive Industry Corp (SAIC)., Wuling Motors, and FAW Group Corp. for managing its new relationship.

While GM sales in the U.S. are down 37.7% to 1.1 million so far this year, its sales in China are growing rapidly. GM's July sales in China surged 77.7% to 144,593 units. For the first seven months of the year, GM's China sales were up 42.8% to 959,035. In early August, GM celebrated the sale of its 1 millionth vehicle in China this year.

At the end of last month, GM launched a joint venture with FAW Group Corp., the second-biggest Chinese automaker, to make light commercial vehicles in China.

GM CEO Fritz Henderson said on July 10 that the company would set up its global operational base in Shanghai, a base which is likely to equal the Detroit headquarters in significance.