GM Financial Chief Says Asia Focus Now On China, Not Japan

TOKYO October 21, 2003; Dow Jones reported that cracking the Japanese market once meant do-or-die for U.S. automakers hoping to succeed in Asia. But with China's car market now exploding, that's all changed.

"Do we have to sell cars in Japan to be successful in Asia? No longer the case," General Motors' Chief Financial Officer John Devine said Tuesday.

"Today the focus of General Motors is not selling cars in Japan. It's selling cars in China, getting into Korea, selling cars in Thailand, selling cars over time in India," he told reporters.

GM has tried for years to sell more of its cars in Japan, but the U.S. auto giant and other foreign car makers haven't had much success. In the six months to September, for instance, the number of imported vehicles sold in Japan came to a mere 7% of the sales of domestic vehicle sales by Japanese automakers.

Devine said his company hopes to sell more cars in Japan but that he didn't expect U.S. and European car makers to make any major breakthroughs, given local companies' strong grip on the market.

"The Japanese companies have very strong position here on distribution and product and I don't see that changing," he said.

Japan's GM's strategy now is to strengthen its ties with local companies, including Fuji Heavy Industries Ltd. , Suzuki Motor Corp. and Isuzu Motors Ltd.

"Will we sell more cars in Japan? I think so, but in terms of the top focus for General Motors - and I think this is true for other companies: The other markets in Asia offer significant opportunities for us and we're going to go where the opportunity lies," he said.