INTERVIEW-GM bullish about Asia auto market
By Angela Tan
SINGAPORE, Feb 2 (Reuters) - General Motors Inc (GM) is
very bullish about the Asia Pacific and expects the region's
automobile sales to return to pre-crisis levels by end 2000 to
early 2001, the group's Asia Pacific President said on Tuesday.
"We are very bullish on the Asia Pacific region," Rudolph
Schlais told Reuters.
"There are signs that are saying very positive things that
things are turning up...By approximately the end of 2000 and the
beginning of 2001, it will be close to 1996 sales," he said.
Fuelling his bullishness were the region's three billion
people, high savings rate and emerging middle-class.
"I strongly believe what I said about all the factors still
being there for the region to grow rapidly in the auto business."
"We are progressing. We are spending investments in this
region," he said.
GM's new US$1.5 billion manufacturing plant in Shanghai,
China will produce its first car by the end of December and its
Thailand plant would start production by the second quarter of
2000, he said.
Schlais shrugged off over-capacity concerns in the region.
"(You've) got to look around and see what happens when you
come back to 1996 sales levels. The forecast indicates about
eight million additional units from 12 million to 20 million."
"Let's assume we are off 50 percent, there is still four
million. There isn't that type of capacity around the market
place," he said.
Schlais said the Asia Pacific Economic Cooperation (APEC)
economies already account for almost half of the world's
automotive exports.
Almost 60 percent of the world's motor vehicle sales and over
60 percent of motor vehicle production take place in the APEC
economies, he said.
"Despite the crisis, over the next 10 years, vehicle sales in
the Asia Pacific region will grow by more than that of Europe and
North America combined," he said.
Schlais said GM was revising its strategy for the region in
an effort to combat existing barriers to entry imposed by some
countries.
"We are revising some of our strategies...So when you have to
revise your strategies, what it basically says is that you
(would) probably be producing smaller volumes in some countries
until the barriers change," he said.
APEC groups Australia, Brunei, Canada, Chile, China, Hong
Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, the Philippines, Singapore, South Korea, Taiwan, Thailand
and the United States. Peru, Russia and Vietnam start full
participation in the group this year.
Schlais was attending the launch of APEC Automotive
Dialogue, which aims to promote auto industry growth in the
region.
The first dialogue is scheduled to be held in July in Bali,
Indonesia, newly-appointed Chairman Ian Grigg told a news
conference earlier. |
