In its drive to revamp international operations and maximize cost efficiency, General Motors has agreed to the sale of its production facility in Rayong, Thailand. This is part of the company’s goal to increase shareholder value and concentrate on markets where there are significant financial returns.

GM’s vehicle and powertrain assembly plants will be acquired by Great Wall Motors of China. Part of the latter’s business strategy is to expand throughout the ASEAN region. With the addition of the Rayong facility to its arsenal, Great Wall hopes to increase its market share in Southeast Asia with Thailand as its base, and to export its products to other regions such as Australia.

With the addition of the Rayong facility to its arsenal, Great Wall hopes to increase its market share in Southeast Asia with Thailand as its base

The Rayong factory’s sale to Great Wall is not only due to GM’s desire to streamline its global operations. It is also hoped that the procurement of the facility by the Chinese will ensure that vehicle production will remain at the site and keep local jobs in the process.

With both automotive firms aiming to finalize the deal by the end of 2020, this also signifies the exit of the Chevrolet brand from the Thai car market. As far as products are concerned, there is no word yet on the fate of the Trailblazer SUV and the Colorado pickup truck, both of which are manufactured in Rayong.