As president of General Motors' Latin America, Africa and Middle East (GM-LAAM) business unit, Maureen Kempston Darkes knows a thing or two about doing business in politically volatile markets.
Miramar-based GM-LAAM is making money despite political and economic upheaval in many parts of its regions. The unit reported adjusted earnings of $156 million for the second quarter this year, a steep jump from $25 million in the same quarter last year.
For the first half of 2006, GM-LAAM's sales increased 16.3% to 475,500 vehicles; its market share increased slightly to 17.2%.
"You deal with volatility in all of these countries," says Darkes, the highest-ranking woman at GM.
GM-LAAM has a large manufacturing presence in Brazil, Argentina and Chile; assembles vehicles in Colombia, Ecuador and Venezuela; and has sales, marketing and after-sales operations in all Latin American countries, primarily under the Chevrolet brand. The unit builds cars with the regional market front and center, Darkes says. In Brazil, for example, it helped develop flex-fuel technology that allows cars to run on ethanol, gas or a combination.
It also relies on "a very strong base of local nationals who understand the countries and volatility and how to respond quickly to economic and political situations," Darkes says.
When the Brazilian real was devalued, for example, the GM unit focused on exports. When it appreciated, GM quickly switched focus to the domestic market. Says Darkes: "You have to be flexible."
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