Isuzu To Take Over GM South Africa’s Commercial Vehicle Manufacturing

General Motors (GM) announced today that it is restructuring its business in two of its key international markets – India and South Africa.

In South Africa, GM will phase out the Chevrolet brand by the end of this year, as well as exiting from its pick-up truck and lorry manufacturing joint-venture with Isuzu, Isuzu Truck South Africa, which GM had a 30 percent stake in.

The restructuring will see GM selling its 30 percent stake and its Struandale plant to Isuzu. The Japanese commercial vehicle specialist will also purchase GM’s Vehicle Conversion and Distribution Centre and assume control of the Parts Distribution Centre.

The Struandale plant currently produces the Chevrolet Spark, Chevrolet Utility (a passenger car-based truck similar to Aussie ‘utes’, Isuzu D-Max and Isuzu lorries.

Meanwhile in India, GM will cease sales of Chevrolet vehicles by the end of 2017. However GM India’s manufacturing facility at Talegaon will continue to produce the Chevrolet Spark (sold in India as Beat) for export to Mexico and other countries in South and Central America.

“As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company,” said GM Chairman and CEO Mary Barra. “We are committed to deploying capital to higher return initiatives that will enable us to lead in our core business and in the future of personal mobility.

“Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term. We will continue to optimize our operations market by market to further improve our competitiveness and cost base.”