It's a jungle out there: GM's first lady: Five minutes with: Maureen Kempston Darkes, GM president, GM Latin America, Africa and Middle East. (International Trends).
Saturday, February 1 2003
Maureen Kempston Darkes, head of GM's operations in Latin America, Africa and the Middle East has good news and bad news.
The good news is that market share is finally growing in select South American markets. But the bad news is that the economy is still volatile throughout the continent and will continue to stay that way.
GM, says Kempston Darkes, is No. 1 in Columbia, Chile, Argentina, Peru, Paraguay and Ecuador. And while those are all relatively small markets, GM is also picking up market-share in region's largest market-share in region's largest market-Brazil.
"It's a great story in Brazil," Kempston Darkes says. "We've picked up a half of point in marketshare. We're at 23 percent and in the No. 3 position."
Additionally, after launching new product into Brazil there were several months where the company came in at No. 1 and No. 2.
"In down markets we've clearly grown marketshare and that's important," she says. "In Brazil we're cautiously optimistic that this year it will begin to grow volume and see a gain in the market. I think there's some potential for that."
Kempston Darkes also is in change of another controversial market-the Middle East. But while political tensions are rising she says it is and will likely remain a good market for GM.
Kempston Darkes recently sat down with Automotive Industries to give an update on Latin America and the Middle East and talk about why these market continue to be key for the world's largest automaker.
Q. What happened in Argentina during the year? Were there any surprises there?
A. We knew the volumes would be substantially off and indeed they were. But there was good news for General Motors in Argentina. Our Rosario plant operated on one full shift and that's the best production that we've had in the plant since it was built. It largely exports products throughout South America.
Q. Any improvements for Argentina for 2003?
A. I think they'll be some improvement. But we're not looking for a major uptick in sales.
Q. How are things In Brazil?
A. One other good news item from Brazil is that we see the government reducing the tax on 1.0L and over engines. Prior to that almost well over 70 percent of business went to the very small 1.0L engines. We're seeing that fall off to about 55 percent and we're selling engines higher than 1.0L. Additionally, the new Corsa's doing very well and so has the new Meriva which has just been introduced in Brazil. It's taken the No. 1 position in the market since it's been introduced.

