Isuzu to Take Over as GM Exits South Africa
www.chinatrucks.com: General Motors Co., which initially started vehicle production in South Africa in 1926, plans to sell its manufacturing plant in the country to Japanese truckmaker Isuzu Motors Ltd. as part of a worldwide reorganization to focus on more profitable businesses.
The General Motors factory in Cape Town, South Africa, circa 1956
Isuzu will take over GM’s commercial-vehicle factory in the coastal city of Port Elizabeth and will also buy the U.S. automaker’s 30 percent share of a truck manufacturing joint venture, GM said in a statement on Thursday. The company didn’t disclose financial details of the transaction. GM will also stop selling Chevrolet cars in the country.
“We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities,” Stefan Jacoby, president of international operations, said in the statement.
The move comes as part of Chief Executive Officer Mary Barra’s review of the business following its plan to sell European operations to Peugeot maker PSA Group. The company also announced a scaling back of its Indian operation, which will now only be used for exports. GM sold a majority stake in its East African business in the Kenyan capital of Nairobi to Isuzu in February.
At Mary Barra’s GM, It’s Profit Before All Else. Auto manufacturing is one of the bright spots in the South African economy, which last year expanded at the slowest pace since a 2009 recession. The government’s auto-incentive program has attracted companies including Toyota Motor Corp., Volkswagen AG and BMW AG to set up and invest in factories, which produce vehicles mainly for sale abroad. In August, a Chinese state-owned car manufacturer agreed to build an 11 billion-rand ($813 million) auto plant in South Africa, the biggest investment in a vehicle-production facility in the country in four decades.
“While it is regrettable to see General Motors exit South Africa, market performance leading to cuts in profitability, coupled with recent global initiatives, have created the conditions to make such a move likely,” Trade and Industry Minister Rob Davies said in a statement. “Although we do not welcome this decision, we believe that the future of the industry is positive.”
Automaker industry representatives are working on a strategic plan to increase South African vehicle production and an announcement on the initiative is expected by early 2018, he said.
After starting production of Chevrolets in South Africa in 1926, GM divested its holdings in the country in 1985 and then revived activities in 1997. GM said it is continuing to work with PSA on the prospects for the Opel brand in the country.
- ISUZU Launches D-Max AT35 in UAE 2017-05-10
- Isuzu Launches Six New Truck Models in Thailand 2017-05-09
- Isuzu to Double Heavy Truck Production in Thailand, Increase Exports 2017-05-09
- Philippine TMA eyeing first Truck & Bus Show in 2017 2017-04-27
- Auto Shanghai 2017: ISUZU GIGA Heavy Truck Shows Off 2017-04-20
- Isuzu 4HK1-TC engine gets durability upgrade 2017-03-16
- ISUZU TF185 Launched in Yunnan Province 2016-05-20
- New-launched Qingling VC46 Heavy Trucks to sell back Japan Market 2015-01-16
- Isuzu Releases a Chongqing-Developed Truck 2013-06-08
- Subtle Change in Joint Venture Projects of JMC and Isuzu 2012-12-10
Submit Your Requirements, We Are Always At Your Service.
- Mercedes-Benz Sets to Shine at the Brisbane Truck Show
- Mitsubishi, Toyota and Mazda Scramble to Fill Truck Gap
- BAIC Group Exhibits at Zimbabwe International Trade Fair
- Heavy-Duty Truck Going Electric and Expects Growth in Near Future
- Philippine TMA eyeing first Truck & Bus Show in 2017
- XCMG Chairman Wang Min Attended 2017 Summit of China Manufacturing
- MIIT Leaders Pay a Visit to XCMG Europe
- Developing Countries' Inspection Delegation Visits Sinotruck
- JAC International Distributors Annual Conference 2017 was held grandly in Suzhou
- Brand Upgrading: JAC Announces Bold New Branding Strategy at Annual Conference
C&C Shows Off U550 Tractor at Shanghai Intermodal Asia
At the 4th Intermodal Asia, C&C Trucks, as the only manufacturer of heavy trucks at the Exhibition, brings two new tractor models U550 is among those on show, with advanced K13 engine and 6×4 wheel drive available
- Foton Stays in the First Place in April Light Truck Sales
- Top Ten Rankings for Medium Trucks in April, 2017
- FAW Jiefang Takes a Narrow Lead in Heavy Truck Segment in April
- CV Builders Enjoys Record Sales in March, 2017
- CAAM: 284,000 Heavy Trucks Sold in Q1
- Lifan Ranks No.1 by 270% Year-on-Year Growth in Medium Truck Market
- 8 Heavy Truck Builders See Over 100% Rise in February, 2017
- Tractors Saw a 234.36% Jump Year-on-Year in February 2017
- Light Truck Gets a Strong Rebound, Increasing by 40% Year on Year
- FAW Has the Highest Growth among Top 10 CV Company in January