The Department of Trade and Industry has pledged to work with all stakeholders to mitigate the impact of General Motors’ (GM) exit from South Africa.
Minister of Trade and Industry, Rob Davies, said that while the decision by GM would lead to difficulties in the automotive industry, he was however confident that jobs in the sector could be saved by the recent investments in the industry through the Coega Industrial Development Zone.
“Although we do not welcome this decision, we believe that the future of the industry is positive as automotive industry stakeholders are finalising a master plan for South Africa with a view to growing domestic vehicle production volume and local value addition. An announcement of the final programme can be expected early 2018 latest and will cover the period post 2020,” he said.
Davies added that initiatives would be implemented to ease the effects of GM’s decision such as encouraging the strengthening of Isuzu’s presence in the country.
GM South Africa announced its plans to cease some of its operations in the country this morning, with a video statement released by president and managing director, Ian Nicholls.
He explained that the sale and manufacturing of Chevrolet vehicles would be phased out by the end of 2017, adding that Isuzu would be purchasing GM’s Struandale light commercial vehicle plant to ensure that manufacturing would continue there.
“During the next few months we will implement various initiatives to effect these changes across the business. Processes will be followed to ensure the transition is as smooth as possible,” said Nicholls. “These changes will ensure the stability of the local manufacturing operation, provide a solid base to grow the Isuzu brand in this market, and provide for continued after-sales support for all customers.”
