Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  SHANGHAI STOCK EXCHANGE  >  Great Wall Motor Company Limited    601633   CNE1000018V8

GREAT WALL MOTOR COMPANY LIMITED

(601633)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

General Motors to wind down Australia, New Zealand operations, sell Thai plant to Great Wall

share with twitter share with LinkedIn share with facebook
share via e-mail
02/17/2020 | 11:41pm EDT
FILE PHOTO: The Thai national flag and a car are displayed vehicle in front of the General Motors (GM) plant in the Eastern Seaboard Industrial Estate in Rayong province February 22, 2011

General Motors Co is retreating from more markets outside of the United States and China, saying on Sunday that it will wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021.

It also said China's Great Wall Motor Co Ltd had agreed to buy GM's Thailand car manufacturing plant and an engine factory, a transaction expected to be completed by the end of 2020.

In rearranging its global operations, GM is accelerating its retreat from unprofitable markets, becoming more dependent on the United States, China, Latin America and South Korea.

GM Chief Financial Officer Dhivya Suryadevara told analysts during a Feb. 5 presentation that restructuring GM's international operations outside of China so they produce profit margins in the mid-single digits "does represent a $2 billion (1.53 billion pounds) improvement" compared with 2018's.

Ahead of that presentation, GM forecast flat profit for 2020 and reported a better-than-expected fourth-quarter earnings in the face of a $3.6 billion hit from a 40-day United Auto Workers strike.

With the proposed sale of its Thailand plant to Great Wall, GM is giving up an opening to expand its operations in Southeast Asia.

GM is "focusing on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility," especially in electric and autonomous vehicles, GM Chair and CEO Mary Barra said in a statement.

The changes will lead to cash and non-cash charges of $1.1 billion, as well as the loss of 1,500 jobs in Thailand and 828 in Australia and New Zealand, GM said.

Barra has prioritised profit margins over sales volume and global presence since taking over in 2014.

In 2017, Barra sold GM's European Opel and Vauxhall businesses to Peugeot and exited South Africa and other African markets.

Since then, Barra has decided to pull GM out of Vietnam, Indonesia and India. Great Wall agreed in January to buy a GM vehicle plant in India, a transaction expected to be completed by the second half of 2020.

Like Britain, Australia and New Zealand are right-hand drive markets. With sales of GM's Australian Holden brand plummeting, the company could not justify the investment to continue building right-hand drive vehicles, GM President Mark Reuss said in Sunday's statement.

GREAT WALL GOING ABROAD

Great Wall, one of China's biggest sport-utility vehicle makers, said it will sell cars from the Thai manufacturing plant in Thailand, other ASEAN bloc countries and Australia as it seeks global expansion amid a slowing domestic market.

"Such an acquisition could give Great Wall quick access to the ASEAN market, and Thailand is a good choice for its production base amid the country's established supply chain in the automotive industry," Shi Ji, analyst at Haitong Internation told Reuters.

The firm, which is building a car plant with BMW, sold 1.06 million cars last year, including 65,175 units for export.

"There is no choice, if we don't go global, we will not survive," Wei Jianjun, chairman of the Baoding-based automaker, said last year when Great Wall opened its first full assembly plant in Russia. In January, Great Wall signed an agreement to buy GM's car plant in India. The companies said they expected the transaction would be completed by the second half of 2020.

Great Wall rival Geely [GEELY.UL] is also looking to expand its car sales across the ASEAN region with Malaysia-based brand Proton.

(Reporting by Hilary Russ, Joe White and Yilei Sun; Editing by Christopher Cushing and Richard Pullin)

By Hilary Russ and Yilei Sun

Stocks mentioned in the article
ChangeLast1st jan.
BMW AG 3.03% 47.115 Delayed Quote.-35.58%
DOW JONES AFRICA TITANS 50 INDEX 0.54% 351.53 Delayed Quote.-34.50%
DOW JONES SOUTH AFRICA(ZAR) 0.01% 1337.79 Delayed Quote.-25.85%
GENERAL MOTORS COMPANY -2.53% 20.78 Delayed Quote.-43.22%
GREAT WALL MOTOR COMPANY LIMITED -1.55% 8.89 End-of-day quote.1.13%
PEUGEOT 3.36% 12.165 Real-time Quote.-42.89%
S&P AFRICA 40 INDEX -0.12% 102.9 Delayed Quote.-41.14%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.14% 78.5493 Delayed Quote.28.43%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on GREAT WALL MOTOR COMPANY L
03/31GREAT WALL MOTOR : Eyes Overseas Markets as Profit Drops
DJ
03/27GREAT WALL MOTOR COMPANY LIMITED : annual earnings release
03/13GREAT WALL MOTOR : Revised proxy form for the solicitation of votes by independe..
PU
03/13GREAT WALL MOTOR : Revised proxy form for use at the h shareholders' class meeti..
PU
03/13GREAT WALL MOTOR : Revised proxy form for use at the extraordinary general meeti..
PU
03/13GREAT WALL MOTOR : Revised notice of the h shareholders' class meeting
PU
03/13GREAT WALL MOTOR : Revised notice of the extraordinary general meeting
PU
03/13GREAT WALL MOTOR : Proposed Adoption of the Revised Restricted A Share and A Sha..
PU
03/12SAIC MOTOR : China Auto Sales Fell Sharply in February
DJ
03/10GREAT WALL MOTOR : Production and sales volume for february 2020
PU
More news
Financials (CNY)
Sales 2019 96 940 M
EBIT 2019 5 088 M
Net income 2019 4 339 M
Debt 2019 6 312 M
Yield 2019 4,23%
P/E ratio 2019 9,75x
P/E ratio 2020 9,22x
EV / Sales2019 0,76x
EV / Sales2020 0,72x
Capitalization 67 647 M
Chart GREAT WALL MOTOR COMPANY LIMITED
Duration : Period :
Great Wall Motor Company Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GREAT WALL MOTOR COMPANY L
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 31
Average target price 5,13  CNY
Last Close Price 4,54  CNY
Spread / Highest target 80,4%
Spread / Average Target 12,9%
Spread / Lowest Target -60,5%
EPS Revisions
Managers
NameTitle
Feng Ying Wang Vice Chairman & General Manager
Jian Jun Wei Chairman
Biao Chen Chairman-Supervisory Board
Yu Xin Liu Chief Financial Officer
Ping He Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
GREAT WALL MOTOR COMPANY LIMITED1.13%9 554
TOYOTA MOTOR CORPORATION1.31%174 856
VOLKSWAGEN AG-39.38%62 536
HONDA MOTOR CO., LTD.3.71%40 614
BMW AG-35.58%32 720
DAIMLER AG-44.26%32 110