The automobile industry today is a growth industry in emerg- ing markets. Only about 12 percent of the earth’s 6 billion people enjoy the benefits of vehicle ownership, and industry growth remains positive at about 20 percent per decade, with the potential for global annual sales of 65 to 70 million vehicles by 2010. Most of this expansion will occur in emerging markets such as China, India, Russia, and Brazil.
General Motors’ strategy in China and other Asian markets is very aggressive. Alliances have been the key to its marketing strategies. For example, GM acquired the majority of Korea’s Daewoo Motor Company’s automotive assets in 2002. While GM has 100 percent equity ownership of some of its key units—such as Opel and Saab—the company has used an approach that is more akin to a ‘‘loose confederation’’ in joining recently with other partners such as Suzuki, Fuji, and Fiat. GM has a minority equity stake in each of these companies. In addition, GM has major joint ventures in both