General Motors exits SA – What you need to know

GENERAL Motors has assured owners of Chevrolet, Isuzu and Opel vehicles that they won’t be left high and dry following the company’s shock decision to quit South Africa. All warranties and service plans will be honoured, and parts supply will continue to be available for Chevrolets for up to 10 years after production of the model has ceased, says GMSA. Last Thursday’s announcement that General Motors was disinvesting in SA caught many by surprise and left affected vehicle owners concerned about resale values and after-sales support. GMSA stated that it would stop local manufacture and sales of Chevrolet vehicles by the end of this year; that it will work with PSA (Peugeot-Citroën) group to develop the future strategy for the Opel brand in South Africa after the recent international sale of Opel to PSA; and that the newly-established Isuzu Motors South Africa will continue to produce Isuzu bakkies and trucks at the Struandale factory in Port Elizabeth, which it has purchased from GMSA. Production of the Chevrolet Spark hatch and Utility bakkie will cease by the end of the year. GM said all existing warranties and service plans remain in place and will be honoured beyond 2017. From 2018, Isuzu dealers will provide after-sales support to Chevrolet and Opel customers until the discussions with PSA have been finalised. However, Isuzu Motors SA plans to trim GMSA’s dealer network down to 90 from the current 132 dealers. General Motors said its disinvestment in SA was based on a global decision on where the company believed it could get the best return on investment, and the carmaker also recently quit India, Russia and Europe. The move still came as a surprise given the relative popularity of the brand in South Africa, particularly the locallybuilt Chevrolet Spark and Utility. The Utility half- tonner is one of SA’s best-selling vehicles and averages over 1000 units per month, while the Spark is a relatively popular entry-level hatch and averaged 365 monthly sales last year. Chevrolet’s exit will also see the local demise of the Cruze sedan, and the Captiva and Trailblazer SUVs. Chevrolet sold 7 847 vehicles in SA last year, far fewer than big players like Toyota, Ford, and Volkswagen, but ahead of brands like Suzuki, Fiat, Land Rover and Volvo. Isuzu’s mid term future seems assured with Isuzu Japan’s decision to take over GM’s dealer network and buy the Struandale plant, where assembly of the Isuzu KB one ton bakkies, medium commercial vehicles and heavy duty trucks will continue. The KB is a popular seller that moved 12 421 units in SA last year with a further 1605 exported, and Isuzu Motors says the company has a long-term interest in the African market where SA will serve as an important base. As for Opel, a press conference has been scheduled in Sandton on June 8 to announce the way forward. After previously being marginalised by GMSA, Opel has made a comeback in recent years with the launch of cars like the Mokka, Corsa, Adam, and the Astra which was recently voted SA’s (and this publication’s) Car of the Year. Opel sold 4 098 cars in SA in 2016, which might seem a bad omen for the brand given that Chevrolet sold nearly double that and still decided to quit the country. However, Opel’s volumes could be a boon for PSA which sold only 982 Peugeots and 437 Citroëns here last year and subsequently discontinued the Citroën brand. For more information visit GMSA’s frequently-askedquestions section online at www.gmsouthafrica.co.za. Alternatively call 082 628 8360, 079 881 0306 or 082 955 4354.