GM sets up marketing, distribution subsidiary

General Motors, the fifth largest car manufacturer by the number of cars sold in the country, today announced plans to hive off its marketing and sales activities into a separate company. The new company — called GM (India) Marketing — will oversee sales and distribution of the company’s Chevrolet brand of vehicles in the country. The company says its President and MD Karl Slym will head the new company.

GM China, which also has a separate company for its marketing initiatives (called GM Distribution), has formulated this model to help maintain timely delivery and achieve cost synergies. 

"With GM's operations in India expanding significantly in size and scale, it has become necessary to bring greater focus and efficiency to selling and distributing our world-class products and services. This move will help us improve planning, inventory and transport management, timely delivery and thus, maximize cost synergies," says P Balendran, vice-president, GM India. Recently, the company announced plans to introduce more models under the Chevrolet brand.

The move to set up a new marketing company will entail the transfer of some employees to the new company and hence there will be no new hiring. Recently, the company announced plans to introduce more models under the Chevrolet brand, and to launch two new cars by 2010. They are the global compact car and GM’ Chevy Volt - the company’s first electric car."General Motors (India) Marketing will also help us to unlock value in the near future, which in turn will seek to optimise effectiveness and maximise the company's efficiency."

The move to set up a new marketing company will entail the transfer of some employees to the new company and hence there will be no new hiring. Recently, the company announced plans to introduce more models under the Chevrolet brand, and to launch two new cars by 2010. They are the global compact car and GM’ Chevy Volt - the company’s first electric car.