Pallak explained that the impact of Covid-19 started to hit sales at the beginning of April and led to a tough second quarter for the carmaker, as sales dropped across the region and the company strove to comprehend the impact on operations. New vehicle demand in the region dropped by 25% in 2020 to 2m sales overall, with combined vehicle production down 28% to 930,000 units, data from Automotive from Ultima Media indicates. GM saw a similar impact on its own sales. While they have begun to pick up in Q4 and imports from North America are up and running again GM has comprehensively reviewed its import strategy as part of wider cost cutting measures.

The carmaker had been importing 75% of the vehicles it sold in the Middle East from the US and Mexico, with the rest coming from China, South Korea and the rest of the world. However, GM is now turning to the joint venture plants it has in China – Shanghai General Motors and SAIC-GM-Wuling (SGMW) – to produce more vehicles for the Middle East markets, vehicles that are faster to develop, build and deliver. The carmaker is looking to more evenly balance imports from both North America and China.