GM Africa Looks To 6th Generation Isuzu Pick-up for Growth in Sub-Saharan Africa

The launch of the 6th generation Isuzu pick-up will be a major milestone for General Motors in Sub-Saharan Africa. For the first time in the company's history, its manufacturing operations in Port Elizabeth will build the pick-up in both left and right hand drive derivatives, opening up opportunities for export into various markets within the Sub-Saharan Africa region.

The new pick-up, built accordingly to local market specification requirements, will be launched in both left and right hand drive markets across Sub-Saharan Africa during the course of 2013. The initial roll-out will commence in South Africa followed by the South East Africa markets of Zimbabwe, Mozambique, Zambia, Malawi, Seychelles and Mauritius. Markets in East Africa and in the high potential left-hand drive markets of countries such as Angola and Nigeria will follow later in the year.

A range of 16 different models will be launched into various markets (outside of South Africa), covering 13 diesel and 3 petrol models. Specific model line-up and pricing details will be made available at time of launch in the relevant markets.

According to newly appointed President of GM Africa, Mario Spangenberg the latest Isuzu pick-up represents the last phase of a R1 Billion investment at its South African manufacturing operations in three new vehicle assembly programmes which started with the Chevrolet Utility and the Chevrolet Spark.

"Isuzu represents our biggest, most important launch in Sub-Saharan Africa. There is no doubt that the growth in Africa's workforce and increased urbanisation rates will spur on additional infrastructural investment and will result in increased consumer spending and transportation of people and goods. According to the African Development Bank only 60% of Africa's population has access to safe water, 40% to safe sanitation, 30% to electricity and 30% of the rural population to good roads. As governments move to address these needs through infrastructural investment projects, this will in particular stimulate demand for light commercial vehicles," says Spangenberg. "Transport has accounted for the largest portion – almost 46% - of infrastructural investment (into roads, ports etc.) on the continent. General Motors is positioning itself to meet the transportation needs in these markets with unique product offerings from Chevrolet and Isuzu.

"We have recently consolidated our operations in Africa placing us in a strong position to expand on a continent which has tremendous long-term potential for vehicle sales growth. During the past three to four years we have been developing plans to get the right distribution network in place, to correctly align our product portfolio and to establish a strong service and support infrastructure for our customers. Equally important we have done a lot of work with Isuzu to lay the foundation for the successful expansion and growth of the next generation pick-up into the region."

By consolidating its Africa Operations, GM is looking to leverage its resources and to start building momentum in order to grow its business with distributors who operate across North Africa and Sub-Saharan Africa.

GM does business in more than 50 markets in Africa, and has manufacturing operations in South Africa, Egypt and Kenya. In 2012, the company sold over 180 000 vehicles in Africa, an increase of 17.5 percent from the previous year. Just over 100 000 vehicles were sold in North Africa and the balance in Sub-Saharan Africa. Egypt is GM Africa's highest volume market in North Africa with other key markets including Algeria, Morocco and Libya. South Africa is the biggest market in Sub-Saharan Africa and high potential markets include Angola, Nigeria, Kenya, Ghana, Senegal, Ethiopia, Zimbabwe and Mozambique.

In East Africa, where the Isuzu brand is strong the company's market share grew from 25% in 2011 to 26% last year, ensuring our number one position in this market.