Reduced presence in Russia demonstrates General Motors’ growing focus on returns

In this Sept. 19, 2013 file photo, workers check a Chevrolet Cruze car at an assembly line at General Motors plant in St. Petersburg, Russia.

General Motors Co.’s decision to pare back its presence in Russia should improve earnings by helping to reduce losses in Europe also it signals management’s growing focus on returns.

In an effort to cope with Russia’s challenging macro environment, GM will idle its main plant, trim its dealer network and concentrate more on marketing imported luxury vehicles that it may sell at a profit.

J.P. Morgan analyst Ryan Brinkman said the decision is reflective of an executive team that “serves as owners.”

“GM is no longer focused on to be the world\’s largest automaker, but more appropriately on return on capital and return of capital – on investing in the business where appropriate and not investing where not appropriate,” he explained.


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