Why the loss of GM is no shock
SA is the victim of collateral damage as the US car maker retreats to North American and Chinese markets
For once-great General Motors (GM), the numbers required to continue doing business in SA just don’t add up. The predictable reaction to last week’s announcement that the US motor company is disinvesting from SA for a second time was one of "Shock! Horror." In truth, the outcome has been likely for some time. The deal will result in GM selling its SA operations to Japanese commercial vehicle manufacturer Isuzu. At the moment, the Struandale vehicle assembly plant in Port Elizabeth builds Isuzu KB 1t bakkies and two small Chevrolets, the Spark car and Utility pick-up. From 2018, Struandale will build only Isuzus. Besides KB bakkies, the production of heavy trucks and buses, currently bolted together at a nearby facility, will shift to Struandale. GM’s departure from SA will be absolute. The Chevrolet brand will not be sold after this year. Opel vehicles will continue to be imported but through a new, as yet undecided, importer. GM is selling the brand to French company PSA, which own...
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