General Motors quits South Africa, discontinues Chevrolet in India
General Motors announced overnight that it is leaving South Africa completely, and that it will cease sales of Chevrolet vehicles in India.
South Africa
The company will stop producing Chevrolet vehicles, primarily the Spark and Utility, at its South African plant in Struandale, Port Elizabeth. The Chevrolet brand will be withdrawn from the South African market by the end of 2017.
Above: Chevrolet Utility ‘bakkie’.
Isuzu will purchase the Struandale factory, as well as General Motors’ 30 per cent stake in their joint venture truck company. The Japanese company will also buy the General’s Vehicle Conversion and Distribution Centre, and its parts distribution operation.
According to Cars.co.za, Isuzu plans on opening 90 dealerships within the country. At present, the Isuzu KB ute — known as the D-Max in Australia — is sold through GM’s 130-strong dealer network.
In a statement, General Motors said it will “work with PSA Group to evaluate future opportunity for the Opel brand in South Africa”. At present, the Opel Adam, Corsa, Astra and Mokka are sold in South Africa.
East Africa
As part of a deal announced in February, Isuzu will purchase General Motors’ 57.7 per cent stake in their joint venture facility in Kenya. This could strengthen Isuzu’s position as that country’s number one automotive brand.
As with the other regions announced today, the Chevrolet brand will leave the East African market by the end of 2017.
India
While General Motors is selling up and leaving South Africa entirely, it plans to keep its Talegaon plant in Maharashtra state open.
According to the company’s Indian website, the company’s “product plan has four to five years of forecast exports to Mexico and Central and South American markets”.
Above: Indian market Chevrolet Enjoy.
The factory will, however, cease producing cars for the local market, and the Chevrolet brand will be retired by the end of 2017.
In explaining its plans for India, Stefan Jacoby, head of GM International, said: “In India, our exports have tripled over the past year, and this will remain our focus going forward.
“We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market.”
Elsewhere
General Motors says it will also “streamline its regional headquarters office” in Singapore. This location has strategic oversight for the company’s remaining operations in Australia, New Zealand, South Korea, India, and South East Asia.
These latest moves are part of the company’s drive to pare back its overseas operations, especially those that are losing money and have poor future prospects.
Above: Chevrolet Niva.
As we all know, Holden will cease local manufacturing later this year, and become a full-line vehicle importer. The company has also closed its Indonesian factory, and withdrawn the Chevrolet and Opel brands from Russia.
Earlier this year, the General sold almost all of its entire European arm, including the Opel and Vauxhall brands, to the PSA Group, parent of the Peugeot, Citroen and DS marques.
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