Who Knew? General Motors Sells More Cars in Uzbekistan Than in Spain
It may sound like something Borat would report, but the Central Asian nation of Uzbekistan, of all places, made it into the Top 10 global markets for General Motors (GM) in 2010. That's because GM's South Korean subsidiary assembles cars there -- and because GM has close to a 100 percent market share.
GM has just about always pitched itself as a global car company, but its presence was traditionally in North America and Western Europe. That's changing fast.
China was GM's No. 1 market for the first time in 2010, handily outselling the United States. China sales were 2.4 million in 2010, up 29 percent vs. 2009. U.S. sales were up only 6 percent, to 2.2 million. That came as no surprise, since GM reported its results in both markets month by month, showing big increases in the China market. Overall China auto sales already topped those in the U.S. for the first time in 2009.
GM, king of Uzbekistan
No. 10 Uzbekistan is a bit of a surprise, though it's up from No. 13 in 2009. Granted, after China and the United States, volumes fall off pretty sharply. Between them, those two markets alone accounted for 54 percent of 2010 sales; Uzbekistan accounted for GM sales of only 145,000 units. However, its sales were up an eye-catching 41 percent.
GM Korea, formerly known as GM Daewoo, builds the Chevy Spark and other models in Uzbekistan. GM says it has a 95-percent share of the passenger-car market in the country.
In other markets, the Chevy Spark is called the Matiz Creative. That's another important aspect of GM globalization. To the greatest extent possible, it's selling the same models around the world, with relatively small modifications for local tastes. That commonality saves money in development costs and parts procurement.
Meanwhile, in the developed world...
Sales results in several mature markets were less than inspiring in 2010. GM sales gained only 1 percent in the U.K., to 290,000. Sales in Germany fell 30 percent to 269,000. Canada fell 3 percent to 247,000.
Meanwhile, sales in Brazil were up 10 percent to 658,000, making it the No. 3 market, the same as last year. Sales increased 12 percent in both Russia (159,000) and Mexico (156,000). One country that's conspicuous by its absence from the Top 10 is India. GM says it's working on that.
However, these results help show why globalization and diversification are a good idea. That seems obvious, but it's something car companies have struggled with for decades.
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Photo: GM