General Motors South Africa
General Motors South Africa (GMSA) is a wholly owned subsidiary of multinational, General Motors Company, sharing in the benefits of GM’s global design, engineering, purchasing, manufacturing, sales and capital investment resources.
With its head office and manufacturing facilities in Port Elizabeth, the company began distributing Chevrolet vehicles since 1913 and started manufacturing in 1926, producing brands such as Chevrolet, Oakland, GMC trucks, Buick, Pontiac, Oldsmobile and Vauxhall.
Today the motor manufacturer employs approximately 1800 people at its assembly plants and headquarters located in Port Elizabeth. GMSA’s sales and marketing office is located in Woodmead in Johannesburg, and its’ regional offices are in Durban and Cape Town.
The company’s 137 dealerships are situated in towns and cities throughout the country, distributing brands like Chevrolet, Opel and Isuzu.
SHORT HISTORICAL BACKGROUND
- 1913 – GMSA established and began with distributing Chevrolet vehicles
- 1926 – GMSA started assembling vehicles in 1926, producing brands such as Chevrolet, Oakland, GMC trucks, Buick, Pontiac, Oldsmobile and Vauxhall
- 1986 – GM disinvests from South Africa due to political pressure
- 1987 – Delta Motor Corporation is formed
- 1997 – General Motors Corporation purchased 49% stake in Delta Motor Corporation
- 2004 – GM Returned to South Africa by purchasing remaining 51%
GM Africa- Overview
General Motors’ operations in South Africa serve as the headquarters for the company’s Africa region, which is divided into Sub-Saharan Africa and North Africa operations.
GM does business in more than 50 markets in Africa, and has manufacturing operations in South Africa, Egypt and Kenya. In 2013, GM sold over 181 000 vehicles in Africa.
GM Africa operations covers 50 countries and incorporates a distribution network of 310 dealers.
High Potential Markets
While today South Africa is the largest market for General Motors, the company has its sights set on significantly growing its sales volumes in some of the other high potential markets such as Angola, Nigeria, Kenya, Mozambique, Zimbabwe, Ethiopia, Ghana and Senegal.
GM South Africa
The company has vehicle production facilities in South Africa where it assembles the market leading sub one- ton Chevrolet Utility, the funky entry level Chevrolet Spark and the successful range of Isuzu light commercial vehicles.
The company has invested R1 billion in three new vehicle assembly programs for the Chevrolet Utility, Spark and 6th generation Isuzu. The 6th generation Isuzu which was launched in 2013 in both right and left hand drive, opening up many more new markets in the region and thus placing the company in a position to increase exports of its locally assembled products on the continent.
Other recent investments include a R150 million state of art Vehicle Conversion and Distribution Centre and a R250 million Parts Distribution Centre which boasts over 144 000 different part numbers, servicing key markets in Sub-Saharan Africa.
GM East Africa
The company has been assembling vehicles in Kenya since 1977 through its joint venture operation with the Government of Kenya. The key thrust of its vehicle assembly business is Isuzu buses, light commercial vehicles and trucks. Chevrolet products are also sold in the market and the Trailblazer is the most recent addition to the portfolio. GM East Africa has a market share of around 25% indicating the strength of its products. GM East Africa has produced over 70 000 vehicles since 1977.
North Africa Operations
The company has production facilities in Egypt and has been manufacturing vehicles for the Egyptian automotive market since 1985. Currently they produce passenger vehicles such as the Aveo, Lanos and Captiva and commercial vehicles such as the Pick-up, Light Duty Truck, Minibus and Mini-Van under the Chevrolet brand. During the last 3 years GM strongly penetrated the Egyptian automotive market with the introduction of 6 new vehicles such as the Chevrolet N300, the new Chevrolet pickup, the Aveo LCI, the New Optra, Opel Astra & Opel Insignia. GM owns over 24% share of the market and continues to lead the Egyptian automotive industry.
Well positioned to grow
Africa, with a population of around 840 million and a growing middle class, represents a great opportunity for General Motors to increase its vehicle sales in emerging markets. The company’s top-selling products in Africa include the Isuzu pick-up, Chevrolet Utility, Chevrolet Aveo, Chevrolet Cruze, Chevrolet Spark and Chevrolet Captiva.
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General Motors South Africa