GM to withdraw from SA

Isuzu Motors intends to purchase GM’s South African light commercial vehicle manufacturing operations and strengthen its presence in the market. GM intends to cease local manufacturing and selling Chevrolet vehicles in the domestic market by the end of 2017.

MOTORING NEWS - General Motors and Isuzu Motors yesterday announced their respective future plans for the Isuzu, Chevrolet and Opel brands in South Africa.
 
Isuzu Motors intends to purchase GM’s South African light commercial vehicle manufacturing operations and strengthen its presence in the market. GM intends to cease local manufacturing and selling Chevrolet vehicles in the domestic market by the end of 2017.
 
“After a thorough assessment of our South African operations, we believe it is best for Isuzu to integrate our light commercial vehicle manufacturing operations into its African business,” said Stefan Jacoby, GM executive vice president and president of GM International. “We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities.”
 
Isuzu said it intends to purchase the Struandale manufacturing plant and GM’s minority shareholding in Isuzu Truck South Africa to continue manufacturing the Isuzu KB and medium- and heavy-duty commercial trucks in Port Elizabeth. It will also assume control of GM’s parts distribution centre and vehicle conversion and distribution centre.
 
Isuzu will set up its own dedicated dealer network for existing and new Isuzu customers.
 
“We are committed to the South African market,” said Haruyasu Tanishige, senior executive officer for the sales division of Isuzu Motors Ltd.
 
“Isuzu is building a strong base to grow on the African continent in the long term. Evidence of this is our recent purchase of GM’s 57,7% shareholding in its East African operations, which has given us management control of the company.
 
Isuzu vehicles have had a presence in South Africa since assembly began over 44 years ago. For the past four years, Isuzu has occupied the number one position in the medium- and heavy-duty commercial truck segment of the South African market.
 
GM South Africa announced that it will continue to provide service and parts support for Chevrolet customers.
 
The George GM dealership Kempston Motor Group supported this statement and wants to reassure Chevrolet owners that their warranties and service plans will be supported.
 
"The growth seen by Isuzu since taking over sales of heavy commercial vehicles means we are excited about the future", the Kempston spokesperson said.
 
GM South Africa said in its media statement that it will also work closely with dealers on a transition plan. Customer support resources will be expanded and all warranties and service agreements will be honoured. Service and parts requirements for all vehicles will continue as normal.
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