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GM gears new production in developing countries

Published by Steve Coleman on August 10, 2011

General Motors latest drive will be into emerging markets.

The automaker said it plans to add 80 per cent of new production through 2015 outside of North America, although it does plan to invest in factories closer to home.

Over the next two years, GM will spend $5.5 billion refurbishing North American plants, but plans to build most new production capacity in lower-cost countries.

The company says it has geared domestic production to build up to 16 million vehicles a year, but hasn't seen that much business since 2007. The predicted production numbers for 2011 say GM will build about 13 million vehicles, between 98 and 99 per cent of its capacity.

GM has removed about 1.5 million vehicles in annual production capacity in North America since 2005.

Most of that has come from plant closures. During the same period, they've also reduced U.S. labour costs by $11 billion.

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