Yesterday, US banckruptcy judge Robert Gerber approved General Motors’ plan to sell the bulk of its assets to NGMCO Inc., or ‘New GM’, in order to potentially clear the way for the company to emerge from bankruptcy protection. The new company will acquire GM’s strongest operations and benefit from lower operating costs.
General Motors South Africa (GMSA) will be incorporated into the ‘New GM’ and will continue with business as usual. The latest vehicle sale statistics from the National Association of Automobile Manufacturers of South Africa (NAAMSA) indicate that GMSA has infact strengthened its market position in June with the sale of 4374 units.
Steve Koch, president and MD of GM’s African operations says “We are confident that we are taking the necessary steps to position GM South Africa for the future and are particularly gratified by the June NAAMSA sales results, which was our strongest sales month for the year and which resulted in our market share growing to 14.55%”.
GMSA will also continue with construction of its R250 million Pan African Parts Distribution Centre (PAPDC), which begins next week at the Coega Industrial Development Zone (IDZ). The new 38 000 square metre facility will replace various existing parts and accessories operations in Port Elizabeth and will service GMSA’s existing dealer network, as well as numerous Africa export customers.
In addition, plans remain on track for the launch of the all new Chevrolet Cruze later this year. The Cruze is the first of a new family of Chevrolet ‘global’ cars and will set the style for future Chev’s in South Africa.