Rats! They’re leaving!
What GM’s exit means for SA’s motor industry
Is GM’s disinvestment really such a bitter blow to the SA motor industry? And will its decision make it easier for other companies to leave?
If General Motors’ (GM) imminent disinvestment from SA teaches us anything, it is that SA needs the global motor industry more than the industry needs SA. Irvin Jim, general secretary of the National Union of Metalworkers of SA, may "smell a rat" in GM’s decision to quit this country for a second time, but SA and Africa are luxuries that the US-based automotive company can do without at a time of enforced corporate restructuring. The bigger issue is whether other multinational motor companies feel the same way. SA is arguably the most competitive place on Earth. Can an annual new-car market of 360,000 really support dozens of brands selling more than 3,400 models and variants? Toyota SA CEO Andrew Kirby says: "There has to be some rationalisation. There’s too much variety for a market of this size." Several brands have come and gone in recent years. Notably, Citroën left SA in 2016. What about manufacturers? Can SA justify seven (soon to be eight) major vehicle producers which, toge...
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