INDUSTRY ENVIRONMENT
No sign of dominoes as GM departs
GM’s disinvestment highlights the challenges facing automotive firms in SA. But there are plenty of reasons to stay
Four months after American auto giant General Motors (GM) announced it was disinvesting from SA, the sun still rises every morning, the rand still wobbles, South Africans still drive like maniacs and a certain Indian family continues to exert undue influence over government policy. In short, unless you’re a GMSA worker worried about your job or a Chevrolet owner concerned about the future resale value of your vehicle, you probably haven’t noticed any difference. Discussions on a new, long-term automotive investment policy running to 2035, are well advanced. Other multinational motor companies are putting additional resources into their SA operations. And there is no sign of the often-predicted domino effect: the idea that once one of SA’s seven established major manufacturers quits, it will be easier for the rest to follow suit. Still, GM’s decision sends one message: that one should take nothing for granted. Right up until the last moment, GMSA was declaring its commitment to SA an...
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