1. Globalization of Production: GM in Uzbekistan
Yekaterina Song
International Business & Trade

2. Questions to Discuss
Why GM chose Uzbekistan among other Central Asian countries?
What are the reasons of General Motors’ high sales in Uzbekistan?
What would be one of the main reasons of smaller market share of GM cars in Indian market comparing with Uzbek automobile market?
What are the positive impacts from Globalization of GM car production can be found in Uzbekistan?
Is there any threats for GM in Uzbekistan Automobile Market in the near future?

3. GM in brief Largest American Automobile Corporation
Foundation date: 1908
was largest automobile producer in the world during 77 years (till 2008)
owns factories in 31 different countries
sales in 157 countries
total number of employees: 202,000

4. GM Brands

5. GM Uzbekistan Chevrolet

6. Uzbekistan

7. Uzbekistan Independence 1991 (21 y.)
Secular country with majority of Muslims 80%
Over 120 different nations
President is a head of the state
Spoken languages:
Uzbek (90%), Russian (50%), Farsi
Main industries:
Cotton (2nd exporter), Gas, Gold (4th producer), Machinery, Chemicals; Tourism and services (7,000 historical sites)

8. GM Uzbekistan Joint Venture of UzAvtoSanoat JSC (75%) and GM (25%)
produces Chevrolet brand cars and Daewoo
founded in March, 2008
location: Asaka city, Eastern part of Uzbekistan
production capacity: 250,000 automobiles a year

9. GM Uzbekistan assortment
Chevrolet Tacuma (2007~2008 y.)
Chevrolet Epica (2007~2011 y.)
Chevrolet Nexia (2008~2011 y.)
Matiz $ 6,900
Matiz Best $ 6,800
Chevrolet Spark $ 9,300
Chevrolet Lacceti $ 14,500 ~ 17,700
Chevrolet Captiva $ 30,000
Chevrolet Malibu $ 33,200
Chevrolet Cobalt (from 2013 y.)

10. Features & Achievements
In 2011, 94% of all new cars sold in Uzbekistan was produced by GM Uzbekistan
GM-Uzbekistan is 3rd largest exporter of automobiles to Russia
Uzbekistan is 8th largest market for Chevrolet in the World (in 2011)

12. 1. Why GM chose Uzbekistan but not any other Central Asian country?

13. 1. Why GM chose Uzbekistan but not any other Central Asian country?
1992 UZ-Daewoo J-V
2008 GM Uzbekistan

14. 2. What are the reasons of General Motors’ high sales in Uzbekistan?

15. 1. What are the reasons of General Motors’ high sales in Uzbekistan?
GM Uzbekistan is the only Passenger Cars producing Company in Uzbekistan.
High import tariffs for foreign cars – 20~30% additional cost of $3,000~9,000, shipping cost
Expensive Auto-service for imported cars.

16. 3. What would be one of the main reasons of smaller market share of GM cars in Indian market comparing with Uzbek automobile market?

17. Indian Market for Passenger Vehicles

18. 4. What are the positive impacts from Globalization of GM car production can be found in Uzbekistan?

19. 4. Positive impacts
more jobs (5,000 employees working in GM assembly plant)
money inflow into state budget
development of related businesses
(60% of components localization is already reached domestic companies supplies their products to GM Uzbekistan factory)
advanced technologies from Korea, Italy, Holland, USA, German, Japan, Czech, India, and Poland
Education (ex: Turin Polytechnic University in 2009)

20. 5. Is there any threats for GM in Uzbekistan Automobile Market in the near future?

21. http://media. gm. com/media/us/en/gm/news. detail

22. Thank You!!