In a shock move this morning, American-owned automotive manufacturer and key investor in South Africa, General Motors (GM), announced it was closing its local operations and moving out of the country by the end of this year.
It has had a presence in South Africa since 1926.
GM and Isuzu Motors held a joint press conference in Port Elizabeth this morning (Thursday), outlining 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 and further on the continent.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 will 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. This is subject to competition regulatory approval.
“We are committed to the South African market,” said Haruyasu Tanishige, senior executive officer for the sales division of Isuzu Motors. “The integration of our light commercial and medium- and heavy-duty commercial business will strengthen our base to grow here. We will do this through our focus on providing outstanding after sales and customer support, establishing close relationships with our local partners and expanding our business.”
GM South Africa president and managing director, Ian Nicholls, said: “These decisions were not made lightly. We appreciate the support that our employees, customers, dealers, suppliers, the government and other key stakeholders have given us over the many years that we have operated in this country. We will manage the transition as smoothly as possible.”
GM South Africa informed employees and unions of the announcements this morning and will begin the formal consultation process with them immediately.
