View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 5, 2010

SOUTH AFRICA: GM to invest at Port Elizabeth

General Motors South Africa is investing in new production programmes over the next three years to build the replacement for the current Opel Corsa pickup truck, as well as Isuzu models.

General Motors South Africa is investing in new production programmes over the next three years to build the replacement for the current Opel Corsa pickup truck, as well as Isuzu models.

The vehicles are produced at GMSA’s Struandale plant, in Port Elizabeth. GM Africa managing director and president Edgar Lourencon said the company is also studying opportunities to produce additional models on these two platforms, to secure a third production platform, and also to clinch export contracts.

The Hummer H3, produced and exported until last year, was a recent loss. GMSA now only exports Isuzus to some neighbouring countries.

Lourencon said the Struandale plant can achieve a volume of 50 000 units a year by investing in production for the replacement models and bidding for a third platform.

He told Engineering News that GMSA aims to export to Africa as well as other markets but noted this remains a GM corporate decision.

Should GMSA receive the go-ahead from Detroit, it would need to have it all in place by 2013.

Achieving  a production level of 50,000 units a year will allow GMSA to qualify for incentives under government’s Automotive Production and Development Programme (APDP), which is to be implemented in 2013.

GMSA produced around 26,000 units last year, down from 51,000 units in 2008.

Lourencon expects domestic new vehicle sales to grow by 5% to 7% this year, with GMSA production to grow in line with this, and company sales perhaps a bit more.

Topics in this article: , , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto