General Motors Company (NYSE:GM) Moves Up Sharply
General Motors Company (NYSE:GM) has adopted ‘elegant’ strategy to address its East Asian and world market spaces.
In a move that is expected to disappoint Shangai, the world’s largest car maker will split operations and move base. While its Chinese operations will continue to be head quartered in the Chinese capital, General Motors will soon have a regional head quarters at the city-state of Singapore.
Singapore is one of the hottest centers for companies, across industries to establish head quarters and regional quarters for both infrastructural quarters and the strategic location of the city. It allows Singapore-based companies quick and cost effective access to most regions of the area: starting from middle-east to Western Europe as well as ASEAN, India and Australia.
Singapore has continued to encourage companies to set up base by offering great tax rebates. Currently, Singapore’s taxes are at 17%, a very competitive rate in comparison to the facilities it offers.
Further, companies which employ local citizens and contribute to the betterment of the city are offered better SOPS.
However, it has never been a city for automakers.
General Ford’s move could well be one of the first for the auto industry to foray this part of the world!
Meanwhile back in the US, General Motors saw the government further sell its stake in the company, by selling stocks worth $1.2 billion, bringing it down to 4%. This was a move to recuperate some of the investment the government had made, five years ago, to bail out the company. It had invested nearly $49.5 billion then, and the current liquidation will result in earnings of $37.2 billion for the government.
This led to fall in prices at the stock market and GM closed Nov 13 trading at $38.44, a rise of 4.86%. Meanwhile, another auto maker Ford Motor Company (NYSE:F) was up by 2.27% on Nov 13, closing at $17.10.