Sunday, March 24, 2013

Further GM Expansion into China

GM has decided to make a decision based on risk. They had already decided to build two plants in China but has now decided that more expansion could be highly rewarding in the world's number one fastest growing automotive country (http://www.bloomberg.com/news/2013-01-14/gm-may-expand-in-china-beyond-plans-for-two-new-factories.html.)

Although, a move into China seems like a can't miss. GM could run into trouble with the Communist government if the government decided to take over non-Chinese owed business. GM could also not fully understand consumer needs in China. 

The continued expansion into China will help GM hedge loses in other parts of the world. Therefore, the continued expansion is worth the "risk."

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