BY CHRONICLE STAFF
What's good for General Motors is good for the United States, goes the old saying. While that still applies, it's also time to recognize that what's good for Latin America is also good for General Motors. Thanks to Latin America's strong economic growth in recent years, GM has boosted sales in the region significantly, reaching profits that have helped offset growing losses in the United States and other markets.
“Brazil has become a very profitable market, thanks to its growth and to being protected,” says John Wormald, managing partner of UK-based auto industry researcher Autopolis. “Fiat Auto makes all its profits in Brazil. So it's no surprise that GM also makes money there.”
Latin America is not only GMs fastest-growing region in terms of revenues, but also the only profitable region, according to a Latin Business Chronicle analysis of the company's third-quarter earnings statement released last week.
Revenues in GM’s Latin America, Africa and Middle East (LAAM) division grew by 16.3 percent to $5.7 billion, while net earnings grew by 37.4 percent to $514 million. The sales increase in LAAM, which is dominated by South America, contrasts with a 5.8 percent decline globally. And the net earnings compare to GM's overall loss of $2.5 billion in the quarter.
Ford, the second-largest automaker in the United States after GM, also boosted sales in South...
Keywords: Brazil, Buick, Cadillac, GMC, Hummer, Opel/Vauxhall