PART OF DIVESTMENT DRIVE
GM plans sale of stake in East Africa to Isuzu
General Motors sells its stake to Japanese partner Isuzu Motors, as the US car maker continues to exit noncore operations
Detroit — General Motors plans to sell its majority ownership stake in General Motors East Africa to Japanese partner Isuzu Motors, as the US car maker continues to exit noncore operations. Isuzu will acquire GM’s 57.7% stake in the Kenya unit, which produces trucks under the Isuzu brand and sells imported Chevrolet-brand vehicles. The Kenyan vehicle market is tiny, with total sales of about 30,000 vehicles a year. Divesting the stake in the Kenyan unit is "a natural next step for this business", and is consistent with the car maker’s broader goal of refocusing capital on more profitable markets, a GM spokesman said. Isuzu said the unit would become a subsidiary of the Japanese vehicle maker, and will focus on expanding sales and improving after-sales services, the latter of which is a key focus for emerging markets under its midterm business plan through 2018. Isuzu expects sales to improve in the Middle East and Africa region following a slide since 2016. Reuters
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