Asia/Pacific in line for substantial growth

Automotive Industries, July, 2003 by Andrea Wielgat

The Asia/Pacific economy is once again growing and will be the source of important automotive growth in coming years.

"Asia Pacific is really a growth story in the auto industry," says Fritz Henderson, president, GM Asia Pacific.

The economy in Asia will grow 5.2 percent this year (excluding Japan) and that will translate into increased new vehicle sales, says Henderson.

"Some of these markets are just on fire," Henderson says. "We feel confident we will pick up share vs. 2002, 2003."

But the battle will be won capturing individual markets, he says. And especially those markets with the highest growth potential. According to GM data, China tops the list of the markets with the highest automotive growth from 2002 until 2012. Also on that list are India, Japan, South Korea, Thailand, Indonesia, Malaysia, Taiwan and Australia.

"The job must be done market by market," Henderson stresses.

The company has developed a long-ranging strategy to help it see substantial growth in the region.

Much of the strategy relies heavily on the company's affiliates and joint ventures.

"Multiple and unusual business structures are a way of life (in Asia/Pacific)," Henderson says.

Part of that strategy involves the company leveraging its existing product and powertrain portfolio. Especially important is GM-Daewoo, which will play a key technology role in the region along with Holden, which is smaller volume but has a top of the line reputation in the area. Also appropriate on a case by case basis, says Henderson, are the GM North America, Europe and Latin America product.

GM's Japanese partners also will help the company compete in market segments where it is absent Suzuki, for example, is very strong in minicars, a large segment in Japan.

"This is not an expertise that we at GM have," Henderson says.

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