General Motors Auto

History

2022

Losses of $657 million due to withdrawal from Russia

The curtailment of activities in Russia turned into losses for General Motors (GM) in the amount of $657 million in 2022. Such data are given in the financial report, which the American automaker published on January 31, 2023.

General Motors revenue in 2022 reached $156.74 billion. This is 23.4% more than the result for the previous year, when the company's sales amounted to $127 billion. Net profit amounted to $9.93 billion against $10.02 billion in 2021. For this indicator, negative dynamics was recorded at the level of 0.8%.

General Motors lost $657 million due to withdrawal from the Russian market

Since March 2022, the American company has stopped supplying cars to the Russian market due to the current geopolitical situation. Prior to that, models Chevrolet Cadillac of a premium level were available in the Russian Federation (other cars were not officially shipped). During January-March 2022, 266 Chevrolet cars and 162 Cadillac cars were sold in Russia. In April of that year, the company made an official statement regarding the complete winding down of Russian business.

General Motors decided to expand measures to stop operating activities in Russia. GM suspended car imports and commercial activities in Russia on February 28. Taking into account the continuing deterioration of the situation, the company decided to extend the shutdown in Russia, the automaker said in a statement.

According to the Association of European Businesses (AEB), in 2021 GM delivered 2,377 Cadillac cars and 1,046 Chevrolet cars to the Russian market. The growth in relation to 2020 was at the level of 67% and 87%, respectively. GM's total sales in Russia in 2021 amounted to 3,423 cars, an increase of 1.7 times compared to the previous year.^[1]

Announcement of termination of business in Russia

On April 19, 2022, General Motors announced that it would finally leave Russia. The concern dismisses employees and sends out a notice to dealers to stop supplying cars and spare parts.

Suspension of car exports to the Russian Federation against the background of Russia's special operation in Ukraine

On February 28, 2022, information appeared that against the background of Russia's special operation in Ukraine, Volkswagen, General Motors were suspending the export of cars to Russia.

2021: Loss of 6.3 billion rubles from the sale of assets of the automobile plant in St. Petersburg

General Motors Auto LLC registered a loss of 6.3 billion rubles from the sale of the assets of the automobile plant in St. Petersburg to the South Korean company Hyundai. This is stated in the reports of the Russian representative office of General Motors. The data were released in April 2021.

According to Interfax with reference to these materials, the company gained 1.84 billion rubles from this transaction, including 1.83 billion rubles from the sale of the plant itself, as well as 6.6 million rubles from the objects of the unfinished device and 748 thousand rubles from the remains of spare parts. At the same time, the estimated value of these assets amounted to 8.15 billion rubles: 6.53 billion, 1.45 billion and 164 thousand rubles, respectively.

General Motors received 6.3 billion rubles in loss from the sale of Hyundai assets in Russia

GM and Hyundai closed the deal back in November 2020, but by April 2021 the sold plant remains mothballed. Production there was curtailed in 2015. Since then, the American automaker has sold only premium Cadillac cars and several expensive Chevrolet models in the Russian Federation, and also provides support to its customers.

According to Alexei Kalitsev, Managing Director of Hyundai Motor CIS LLC, with regard to GM assets, the company is working out various scenarios, analyzing the capabilities of its own enterprise, needs and market prospects.

And we are also analyzing our lineup, because it is quite obvious that our project in Shushary is long-term, we are looking at the horizon of 5-8 years. Therefore, it is probably premature to talk about any specific models, especially - volumes, "he said.

Kalitsev suggested that a clearer picture could be drawn by the time of the conference dedicated to summing up the first half of 2021. As part of this event, a presentation of the site production program is planned.^[2]

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