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

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?

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

GM Brands

GM Uzbekistan Chevrolet

Uzbekistan

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)

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

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.)

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)

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

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

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

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.

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

Indian Market for Passenger Vehicles

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

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. 80 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)

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

http://media. gm. com/media/us/en/gm/news. detail http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2012/Mar/0321_uzebmalibu.html http://www.thenational.ae/lifestyle/motoring/uzbekistan-an-unlikely-example-of-chevrolets-global-influence http://www.autoblog.com/2010/07/06/psa-chevy-owns-94-of-uzbekistan-car-market-for-make-benefit-gl/

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