General Motors to withdraw from South Africa

GMSA and Isuzu Motors outlined their respective future plans for the Isuzu, Chevrolet and Opel brands in South Africa, subject to local regulatory requirements, to the media in Port Elizabeth this morning.

Isuzu Motors intends to purchase GMSA's light commercial vehicle manufacturing operations in Struandale, and strengthen its presence in the market.

General Motors intends to cease local manufacturing and selling Chevrolet vehicles in the domestic market by the end of 2017.

132 General Motors dealers in SA will now be absorbed into 90 Isuzu dealers under a new franchise arrangement, and GMSA operations will be transferred to Isuzu.

The new company will be known as Isuzu Motors South Africa.

Ritch Schaafsma, GM International Vice President would not concede to it being a disinvestment in South Africa, but rather allocating future investments in Port Elizabeth to Isuzu.

GM South Africa President and Managing Director, Ian Nicholls says they have informed the local staff compliment of 1500 at a special gathering at Nelson Mandela Bay Stadium this morning.

"Obviously we will be entering a consultation process with the employees and their representatives, starting today, given that we have just informed the employees of the proposed restructure. It's premature right now for me to comment on what the outcome of that will be, because it will be part of the consultation process," says Nicholls.

He said the company has established support centres for employees.