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GM carves out a new South American unit

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GM carves out a new South American unit

ASSOCIATED PRESS

General Motors Co. has carved up its international operations to create a unit that will serve South America where it controls about 20 percent of the market.

The company said in a statement today that GM South America will be based in Sao Paulo, Brazil, and will handle sales and manufacturing in Brazil, Argentina, Colombia, Ecuador, Venezuela, Bolivia, Chile, Paraguay, Peru and Uruguay.

GM appointed Jaime Ardila as president of the new region. He will report to Chairman and CEO Ed Whitacre.

Ardila had been in charge of the company’s Mercosur operations which include Argentina, Brazil, Chile, Uruguay and Paraguay.

The new region will allow GM’s international operations unit to concentrate on growing markets including Asia, Russia, Australia and other countries, the company’s statement said.

Recently GM has had only three regional units — North America, Europe and International Operations. Splitting off a fourth unit structures the company similar to what it was before last year’s stay in bankruptcy court. At that time, GM had four units: Asia-Pacific, Europe, North America and Latin America-Middle East.

In his new post, Ardila will join the company’s executive committee.

A separate South America region is needed to handle rising customer demand, GM’s statement said.

GM has sold nearly 400,000 vehicles in South America during the first five months of the year.

The South American unit employs about 29,000 people in manufacturing, sales and product design and engineering.

link:

http://www.freep.com/article/20100622/BUSINESS0101/100622029/1210/BUSINESS01/GM-carves-out-a-new-South-American-unit

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GM ESTABLISHES SOUTH AMERICAN REGION

By Drew Johnson

General Motors announced on Tuesday that it has established a new division to manage the company’s South American operation. The new division will be headquartered in Sao Paulo, Brazil.

Jaime Ardila, current president and general manager GM Mercosur, has been chosen to lead GM’s South American operations. Ardila – now the highest ranking Hispanic at GM – will report directly to company CEO Ed Whitacre.

The new entity will include GM’s existing sales and manufacturing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as well as sales activities in those countries and Bolivia, Chile, Paraguay, Peru and Uruguay. GM South America currently has 29,000 employees.

As part of GM’s International Operation, GM South America will have product design and engineering capabilities, ensuring GM’s global portfolio is tailored to its specific market.

link:

http://www.leftlanenews.com/gm-establishes-south-american-region.html

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Z-06    493
Ardila – now the highest ranking Hispanic at GM – will report directly to company CEO Ed Whitacre.

Why are statements like these important? Aren't we all striving for racism free society? Press is the biggest hypocrite when it comes to preventing racism from happening.

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In split from GM International unit, S. America gets own sales region

Chrissie Thompson

Automotive News -- June 22, 2010 - 11:42 am ET

DETROIT -- General Motors Co., taking another step to fine-tune its international operations, is creating a separate sales region for South America, and the head of the new unit will report directly to CEO Ed Whitacre.

South America was previously part of GM International Operations, which encompassed all countries outside of North America and Europe. The new operating unit, announced today in a statement, makes South America GM’s fourth global region.

In the first five months of this year, GM’s South American sales have climbed 17 percent to 394,000 vehicles or about 12 percent of the automaker’s global sales.

“With the rapidly growing markets in Asia, the Middle East and Russia, we need the GMIO team focused exclusively on those countries that are critical to our growth,” Whitacre said in a statement.

GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada and Italy.

Jaime Ardila will head GM South America out of Sao Paulo, Brazil. He leaves his post as president of GM Mercosur, which encompasses Argentina, Brazil, Paraguay and Uruguay.

GM also said it is shifting Denise Johnson, currently vice president of labor relations, to president of GM Brazil starting July 1. She will report to Ardila. Catherine Clegg will succeed Johnson, vacating her post as GM North America manufacturing manager. GM said it would announce Clegg’s successor soon.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100622/GLOBAL/100629971/1329#ixzz0rcRo6FGm

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Summary Box: GM sets up South American unit

WHAT'S NEW: General Motors Co. split off its South American operations into a separate operating region, appointing Jaime Ardila as president of the unit.

THE REASON: GM said it needed the new division due to rising demand for its cars and trucks in South America, plus it needed to allow international executives to concentrate on fast-growing markets such as Asia and Russia. South America had been part of GM's international operations.

THE SALES: GM sold almost 400,000 vehicles in South America during the first five months of the year and says it now controls about 20 percent of the market.

link:

http://hosted.ap.org/dynamic/stories/U/US_GM_SOUTH_AMERICA_SUMMARY_BOX?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT

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GM Sets Up New Organization for South America

By Ward’s Staff

WardsAuto.com, Jun 22, 2010 11:18 AM

General Motors Co. is putting more emphasis on tapping the growing markets of South America, splintering off a new regional organization from the auto maker’s former Latin America, Africa and Middle East operations.

GM South America will be headquartered in Sao Paulo and come under the direction of Jaime Ardila, currently president and general manager of GM Mercosur. As president of the new arm, Ardila will report directly to GM Chairman and CEO Ed Whitacre.

The new organization will oversee sales and manufacturing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela and sales activities in Bolivia, Chile, Paraguay, Peru and Uruguay. Currently, 29,000 people are employed in the group.

GM says it has sold 394,000 vehicles in the region through May, earning the auto maker a 20.2% market share.

GM International Operations will continue to be responsible for remaining former LAAM operations, but Whitacre says taking South America out of GMIO will allow the group to focus on other growth markets.

“The GM International Operations team is doing a great job expanding our global presence,” he says in a statement. “However, with the rapidly growing markets in Asia, the Middle East and Russia, we need the GMIO team focused exclusively on those countries that are critical to our growth.”

The reorganization also will see Denise C. Johnson, currently vice president-Labor Relations, take over as president and managing director of GM do Brasil Ltda. on July 1. She will report to Ardila.

Succeeding Johnson is Catherine L. Clegg, GM North America manufacturing manager. A replacement for Clegg will be named later, the auto maker says.

link:

http://wardsauto.com/ar/gm_south_america_100622/

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Whitacre reorganizes GM's South America operations as regional unit

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

About a year after General Motors' foreign operations underwent a substantial reorganization, the Detroit automaker is at it again.

GM's operations in South America are being made into a regional organization, the company announced Tuesday. The business unit will be taken out from under the International Operations division run by Tim Lee.

International Operations was given South American operations last year by then-CEO Fritz Henderson as he essentially consolidated much of the company's operations outside North America into the division based out of Shanghai, China.

At the time, GM was in the process of selling off majority ownership in its European operation, Opel.

But the Opel plans were punted last fall by Chairman Ed Whitacre. It was a disagreement that foreshadowed Henderson's eventual departure and Whitacre assuming the CEO role.

Since then, Whitacre has been making his presence known throughout the company. Making the South American operations a stand-alone organization is just the latest change under Whitacre.

"The GM International Operations team is doing a great job," Whitacre said in a statement. "However, with the rapidly growing markets in Asia, the Middle East and Russia, we need the GMIO team focused exclusively on those countries."

Whitacre named Jaime Ardila president and general manager of South America, which includes sales and manufacturing operations in Brazil, Argentina, Colombia, Ecuador and Venezuela as well as sales activities in Bolivia, Chile, Paraguay, Peru and Uruguay.

Ardila had been president and general manager of GM Mercosur, a trade region that includes Brazil and other parts of South America. He will report to Whitacre and be part of GM's executive committee.

As part of the changes, Denise Johnson, vice president of labor relations, will become president and managing director of GM in Brazil, reporting to Ardila.

link:

http://www.freep.com/article/20100623/BUSINESS01/6230330/1331/Whitacre-reorganizes-GMs-South-America-operations-as-regional-unit

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