General Motors (GM) has gone from the South African automotive landscape, but many of the people and facilities have lived to fight another day thanks to the investment by Isuzu Motors. The Japanese company bought the production facilities of GMSA and recently launched the new South African operation.
In spite of leadership changes in national government, Trade and Industry Minister Rob Davies found the time to attend the opening of the plant in Struandale, Port Elizabeth.
He was not the only dignitary in attendance either — with former minister Alec Erwin present and deputy director-general of the Department of Trade and Industry Garth Strachan, as well as a number of visiting Japanese dignitaries and company representatives.
It showed the importance of the investment by Isuzu and the 7.4% contribution of the automotive industry to GDP.
GM’s withdrawal happened when "we were going through some difficult times, when investor sentiment was very low", says Davies.
The decision by Isuzu Motors to take over 100% has already been "vindicated", he says.
That investment is the second-largest by Isuzu outside of Japan and has secured 1,000 jobs at the company as well as 3,000 in the direct supply chain. It also seems to be paying off already, with sales of the locally manufactured Isuzu KB bakkie up in 2017, with 15% of all production being exported.
Like most automotive companies in SA, Isuzu will be keen to see the post-2020 Automotive Production Development Programme finalised.
"We are fairly close to an end game," says Davies, with Strachan adding the plan is likely to go to cabinet around the middle of the year. The new programme "will entrench our commitment to the automotive industry," says Davies.
As well as revealing the new Isuzu MU-X, which you will have read about in Rumours this week, the company showed the new KB X-Rider Black, which will be in its 80 dealerships around SA soon. It also showed a conversion by Arctic Trucks in the UK, which provides more ability for the KB for those who want something even more capable. The company also revealed its new KB chassis-cab offering, which could have wide appeal for those seeking a bodybuilder solution on a smaller commercial vehicle.
"We want to be different, innovative," says Isuzu Motors SA CEO Michael Sacke.
It takes three days for a KB to be produced from start to finish. It is a labour intensive operation, with a limited amount of automation; in fact, the only robots we saw were performing intricate welding operations.
There is also capacity to increase production at the facility and this will happen in the first quarter of 2019 when the existing Isuzu Trucks assembly facility down the road is moved to the Struandale plant.
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