Oct 15, 2010
GM to produce third vehicle model in PE from 2011Back
© Reuse this
General Motors (GM) Africa president and MD Edgar Lourencon says that initial production volumes will be 15 000 units a year, of which 50% will be exported to New Zealand, Australia and other right-hand-drive markets in the Asia-Pacific.
The additional production volume will add a second shift to the current one-shift operation at GMSA’s Struandale plant, creating an additional 500 jobs.
The additional production will also see investment by the US manufacturer in its local operation reach more than R1-billion, which will include preparations to assemble the new replacement models of the Isuzu KB pick-up and Chevrolet Utility, already manufactured at the GMSA plant.
The new Isuzu KB will be launched towards the end of 2012, and the new Chevrolet Utility in 2011.
Lourencon says that adding the Spark as the third production platform to GMSA’s line-up will see the company’s production capacity reach 60 000 units a year, up from the around 30 000 units to be achieved in 2010.
This will mean that GMSA will qualify for incentives under government’s Automotive Production and Development Programme (APDP), which kicks in at an annual production volume of 50 000 units. The APDP will be implemented in 2013.
Lourencon says that GMSA “is committed” to reaching the 50 000-unit threshold, and thanks the commitment from the Department of Trade and Industry to make it happen.
He adds that local content on GMSA’s vehicles will increase from the current around 25% to more than 40%, once all three new assembly programmes have been implemented.
Lourencon also emphasises that the recent labour action in the assembly, motor retail and component industry has “raised a high level of concern” about South Africa’s ability to be a competitive, reliable, global vehicle source, but adds that he is confident that the industry can still work together to increase its international competitiveness.
Trade and Industry Minister Rob Davies says that recent investments announced by South African vehicle manufacturers in preparation for the APDP amounted to R9-billion, support- ing 4 000 jobs, with another R4-billion invest- ment supporting 20 000 jobs, announced by the components sector.
Lourencon also notes that talks with the Japan-based Isuzu Corporation for South Africa to be the manufacturing base for most of the sub-Saharan African countries, and not only South Africa and its neighbours, will see overall exports from GMSA increase to around 15 000 units a year, up from the current 2 000 units.
“Our total export business would then be worth R1,5-billion.”
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other Automotive News
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
The BMW Group will invest R6-billion at BMW Group South Africa’s (BMW SA’s) Rosslyn plant to produce the next-generation X3 sports-activity vehicle (SAV) for the local and export markets. Rosslyn will continue production of the current 3 Series through its lifecycle,...
The lack of consequences for poor performance and transgressions on the part of contractors remains a significant hurdle to tackling South Africa’s service delivery challenges, delegates heard at the Consulting Engineers South Africa Infrastructure Indaba, on...
City of Ekurhuleni executive mayor Mondli Gungubele earlier this month officially named the city’s bus rapid transit (BRT) system, Harambee.
About 58% of unstructured data stored by companies is dark data, which means that the value or regulatory importance of the data has not been determined. Subsequently, most of the stored data add costs, rather than increasing revenue or reduce regulatory risks, says...
Effective logistics, import/export and manufacturing consulting services require detailed industry knowledge and experience, but can add significant value to these industries by providing expert advice on various technical elements in their value chains, says...