GMSA markets Opel, Isuzu, Suzuki, Chevrolet and SAAB. The company's Port Elizabeth based assembly plants manufacture the Corsa, Corsa Utility, Isuzu KB and Isuzu N and F series trucks. Automotive Industries talks to Robert Socia. President and Managing Director of GM South Africa.

AI: Why does General Motors retain an assembly operation in South Africa?

Socia: Firstly, GM has a history in the region having penetrated the South African market back in 1913 with the import of Chevrolets to the country. Later n 1925. GM set up an assembly facility in Port Elizabeth. Subsequently, other plants were established, with the company recording many successes, GM remained in South Africa up until the late 1980's. As a result of the political situation in South Africa and the resultant pressure in the US, the corporation withdrew from the country in 1987. With democracy proving to have longevity, GM acquired 49% shareholding in 1997 and then in 2004 the corporation acquired the balance of shareholding in the local company.

Secondly, with an expected volume of 570 000 vehicles in 2005, South Africa is GM's largest market in Africa and the second largest in the Latin America Africa and the Middle East region. GM's objective is to participate in growth markets and in this regard significant progress has been made in South Africa. The company's share of the market grew from 10.8% in 2003 to 12.2% in 2004 and year to date we are currently running at 13.7%. While the stable political and economic environment has played a key role in stimulating demand in the country, it is significant to note that we have not only succeeded in growing our volumes but also our overall share of the market.

Going forward we will be aiming to further grow our share and in support of this we have implemented GM's Global Manufacturing System (GMS).This ensures that we operate according to one common global system and that our efforts are geared towards producing high quality products. We have also placed a dedicated focus on improving our levels of service to our customers.

Thirdly, the company is based in Port Elizabeth- on the East Coast-and suitably located midway between the Ports of Cape Town to the south-west and Durban to the north-east. This is an ideal location from which to effect logistic operations both inside the country and for export markets. In addition, the company has easy access to South Africa's largest regional economy--Gauteng--by road, air or rail.