GM Unveils a GEM for Emerging Markets

This week General Motors Co. is presenting the first models developed under its new Global Emerging Market strategy.

The carmaker believes it has finally figured out how to thrive in emerging markets with a $5 billion bet on models that are inexpensive yet loaded with safety and high-tech features, Reuters says. GM predicts its low-cost GEM platform will carry 2 million new models annually by 2023.

This week GM is rolling out the first two GEM models—the Chevrolet Tracker and Buick Encore small crossover vehicles—during the Shanghai auto show.

Reuters says the program’s challenge was to develop vehicles that are less costly to make than its domestic models but don’t lack safety features or look cheap.

GM says the resulting vehicles will offer such equipment as airbags, backup cameras, automatic emergency braking, touch screens and mobile phone connectivity. Those features will be paid for by omitting other amenities, such as a fully carpeted trunk, and wringing costs out through smarter logistics.