GM Blames ASEAN Sales Slump on Political Unrest in Thailand

General Motors Co. says it is "struggling" in southeast Asia, mainly because of unfavorable exchange rates triggered by political turmoil in Thailand, the Financial Times reports.

Stefan Jacoby, who heads GM International operations, tells reporters GM imports more parts to the region than its main rivals do, which exposes the company to weakness in emerging-market currencies. He says the only cure is to source more content locally.

Jacoby's comments came as the company officially opened a new headquarters in Singapore for its operations in southeast Asia, Africa, India, South Korea and the Middle East.

The FT says GM hasn't posted a profit in the 10-nation Assn. of Southeast Asian Countries since it created a unit there 21 years ago. Jacoby tells reporters GM needs the "right scale" of products and has "a lot of homework to do" regarding its brand and dealer network in the ASEAN.

He estimates that car sales in Thailand have dropped below 850,000 units compared with nearly 1.5 million last year. Despite the slump, GM won't abandon the $1.5 billion assembly plant it opened in Thailand's Rayong province in 2000, Jacoby adds.