GM sees PE as ideal logistics base

Growing volumes and market share ED RICHARDSON WITH AN expected volume of 570 000 vehicles in 2005, South Africa is General Motors’ largest market in Africa and the second largest in the Latin America, Africa and Middle East region, according to Robert Socia, president and managing director of GM South Africa. “GM’s objective is to participate in growth markets and in this regard significant progress has been made in South Africa. The company’s share of the market grew from 10.8% in 2003 to 12.2% in 2004 and year to date we are currently running at 13.7%.While the stable political and economic environment has played a key role in stimulating demand in the country, it is significant to note that we have not only succeeded in growing our volumes but also our overall share of the market. “Going forward we will be aiming to grow our share further and in support of this we have implemented GM’s Global Manufacturing System (GMS).This ensures that we operate according to one common global system and that our efforts are geared towards producing high quality products,” he says. Being based in Port Elizabeth has its advantages. “This is an ideal location from which to effect logistics operations both inside the country and for export markets. In addition, the company has easy access to South Africa’s largest regional economy - Gauteng - by road, air or rail,” he says. With the introduction of a number of vehicle export programmes together with the strength of the domestic market and its potential growth in the future, an opportunity exists for international suppliers to move into the market, he adds. Turning to investment, Socia says: “Earlier this year GM awarded General Motors South Africa a Hummer export contract valued at $3 billion. Currently, the company is gearing up operations to assemble the H3 with further investment in the Struandale plant. Aimed primarily at export markets in Europe, Asia Pacific, the Middle East and Africa, the H3 will also be available to domestic motorists in the latter part of 2007. Expect more of the same, he adds: “There is more to come. GM South Africa’s objective is to grow its presence in South Africa and it is committed to seeking opportunities to do so,” he says. Robert Socia . . . 'There is more investment to come.'