General Motors Strikes Deal to Return to Myanmar

General Motors will become the first U.S. auto maker to return to Myanmar after signing a letter of intent with Pacific Alpine for the distribution, sale and service of Chevrolet vehicles starting in the fourth quarter.

Waiting to greet GM will be a market of more than 60 million people with little choice in new vehicles as a result of global sanctions in place for a half-century in the country once known as Burma.

The United Nations, the U.S. and the European Union imposed economic sanctions after reports of human rights violations in the country renamed Myanmar by the military regime that seized power in 1962.

But the sanctions have been eased since the military began relinquishing control over the government and GM says with the market and economy opening up, as well as the increasing affluence of Myanmar’s people, the potential for growth is very high.

It is the largest country in Southeast Asia and is bounded by Bangladesh, India, Tibet, China, Laos, Thailand and the Bay of Bengal and the Andaman Sea.

General Motors Southeast Asia Operations says Chevrolet models will be sourced from GM manufacturing facilities around the world to meet the specific requirements of customers in Myanmar.

“This is a significant milestone for Chevrolet’s expansion across Southeast Asia, and signals our commitment to grow in the region,” GM Southeast Asia Operations President Martin Apfel says in a statement.

Chevrolet's partners, Pacific Alpine and Pacific-AA Motor are a strategic alliance that was established in Myanmar by Alpine Group Singapore and AA Medical (Pacific-AA Group).

Alpine Motors, part of Alpine Group, is Chevrolet and Opel’s exclusive dealer in Singapore, while AA Medical is one of the largest distributors of pharmaceutical products and petrochemical lubricants in Myanmar.

Pacific Alpine will leverage Alpine Group's experience in the automotive sector and its long-standing relationship with Chevrolet, while taking advantage of AA Medical’s comprehensive nationwide distribution network, retail expertise and knowledge of the local market.

As Chevrolet’s authorized distributor, Pacific Alpine and Pacific-AA Motor will engage in sales, marketing, training, aftersales and customer care and network expansion.

Pacific Alpine Managing Director Albert Pang says one of the most-watched sectors in Myanmar is the automotive industry.

“About 90% of the vehicle population in Myanmar is more than five years old,” Pang says. “The change in policy to allow the import of new cars will see a swift response from global and regional players. We want to put our foot in the door before the floodgates open.”

Chevrolet and Pacific Alpine also are launching a 3-tiered corporate social responsibility program in the country.

Working with the One World Futbol Project, they will distribute ultra-durable soccer balls throughout Myanmar starting next month. They also will make Chevy vehicles available to eight charitable organizations and donate engines and technical parts to mechanical training colleges in the country.