GM to pull out of South Africa completely and discontinue Chevrolet sales in India by end of 2017

General Motors has announced it is quitting South Africa entirely and will be discontinuing Chevrolet sales in India, both by the end of 2017.

In South Africa, the company will cease sales of Chevrolet brand vehicles and transition its manufacturing operations to Isuzu Motors, selling its Struandale plant in Port Elizabeth as well as its remaining 30% shareholding in the Isuzu Truck South Africa joint venture to Isuzu.

The Japanese company will also purchase GM’s vehicle conversion and distribution centre along with its parts distribution centre. The Chevrolet brand sells the Spark, Cruze, Captiva, Trailblazer and Utility in South Africa.

For the Indian market, the company will refocus its manufacturing operations on producing vehicles only for export, the facility at Talegaon continuing as an export hub for Mexico and Central and South American markets. Though it is stopping sales, it said existing Chevrolet customers will continue to be supported in the market.

The automaker also announced its plans for its other international operations. It will be withdrawing from East Africa, also by the end of this year, and will sell its 57.7% stake in GM East Africa to Isuzu.

It added that its regional headquarters office in Singapore will be streamlined and will be responsible for handling its remaining markets in Australia, New Zealand, India, Korea and Southeast Asia. The automaker said the restructuring of its international operations will result in annual savings of approximately US$100 million.

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