The General Motors (GM) bid to take over local car manufacturer Delta is a sign of confidence in South Africa’s political and economic stability, GM group vice-president Maureen Kempston Darkes said on Wednesday.
”This is a vote of confidence in South Africa and its future and in its people’s ability to create first class motor vehicles,” she said after meeting President Thabo Mbeki in Pretoria.
”We look forward to growing our business in the country and leveraging our success as a springboard for growth in other African markets,” she added.
In a statement, GM said Mbeki expressed appreciation for the company’s African expansion aims.
”This is in line with the objectives of the New Partnership for Africa’s Development, which strives to achieve the development and recovery of the African continent,” it quoted the president as saying.
GM is seeking to buy the remaining 51% of the Delta Motor Corporation, after purchasing the other 49% in 1997. The pending deal, announced last week, depends on the approval of South Africa’s Competition Tribunal.
GM is the world’s largest vehicle manufacturer, employing about 325 000 people globally. The company, founded in 1908, has manufacturing operations in 32 countries and its vehicles are sold in 190 countries.
Its brands include Buick, Cadillac, Chevrolet, Opel, Pontiac, Saab and Saturn.
GM first set up operations in South Africa 76 years ago, but disinvested from the country in 1986 as a result of the political climate at the time. The company was bought out by a local management group, which launched Delta in 1987.
Delta won the Top Non-Listed Company award in 1990, and a year later its Opel Monza 160 GSi won the company its first car of the year award.
If the deal is approved, Delta managing director Willie van Wyk would be succeeded by Robert Socia as new president and managing director of the renamed GM South Africa.
Trade and Industry Minister Alec Erwin welcomed GM back to South Africa, describing the move as an important development for the local motor industry.
He also paid tribute to Delta for developing a world-class operation.
Kempston Darkes said GM is looking forward to working with Delta’s capable workforce to grow the local and export markets. — Sapa