GM adds ‘Spark’ to Eastern Cape volumes

Investment by General
Motors South Africa (GMSA)
is set to boost freight
volumes through the Port
Elizabeth ports and the rest
of the freight industry.
GMSA has announced
that it will be building
the new Chevrolet Spark
at its Struandale Plant in
Port Elizabeth from 2012.
This is in addition to the
new generation Isuzu KB
and Corsa Utility, in order
to hit the 50 000 a year
export target to qualify
for government support
under the Automotive
Production Development Plan
(APDP), according to Edgar
Lourencon, president and
managing director of GM
Africa.
The Spark, which was
launched in South Africa in
August this year, is currently
imported from Korea.
Local production is set to
commence during the first
quarter of 2012.
GMSA will assemble
around 15 000 Sparks per
annum, with half destined for
export markets.
The company also
announced an agreement
with Isuzu Motors Limited
of Japan to expand
exports of its Isuzu light
commercial vehicles in sub-
Saharan Africa beyond the
current export markets of
Mozambique, Zimbabwe,
Zambia, Malawi and
Mauritius.
The Isuzu export contract
together with the new Spark
export contract is valued at
over R1.5 billion per annum.
The increased production
will boost both imports
of components and
exports of fully built
up vehicles by sea or
land from GMSA’s
vehicle distribution
centre in Port
Elizabeth.
Lourencon said
that there were
opportunities in the
short to medium term to
expand export markets for
the new Spark and Isuzu KB.
“The expansion of export
markets for these two vehicle
programmes is however
dependent upon the ability
of the South African motor
industry to improve its
overall competitiveness. The
recent labour disruptions
in the automotive and
components industry and the
associated increases above
the rate of inflation will
require that a concerted and
joint effort is undertaken
by industry, the union and
government to significantly
improve productivity levels
in order to reverse the current
very negative trend,” he said.