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General Motors (GM) has announced that it is “transforming” its business globally and, as a result, will be pulling out of South Africa.
The company said it will “phase out manufacturing and sales of Chevrolet vehicles subject to regulatory approvals”. The company adds that following the sale of Opel to the PSA Group, it will work with the new owner to formulate a strategy for Opel in SA.
The move will however see Isuzu stepping up to the plate, purchasing GM’s light commercial vehicle manufacturing facilities in Port Elizabeth.
“With its proud heritage, Isuzu will deepen its presence in the country with the establishing of Isuzu Motors South Africa.”
General Motors cited a changing industry landscape as one of its reasons for pulling out of South Africa
The company says that the deal is targeted to take effect by the end of the year, but adds that warranties and service plans would be honoured beyond 2017.
“If you are an Isuzu, Chevrolet or Opel owner, on-going aftersales and parts support will continue through the existing GM dealer network to the end of 2017. All existing warranties and service plans remain in place and will be honoured beyond 2017,” the company elaborated.
“From 2018, Isuzu dealers will provide aftersales and service support to Chevrolet and Opel customers until the details of our discussions with PSA have been finalised.”