GM Motors has announced an exit plan for some of its operations in South Africa. The bombshell dropped yesterday – Chevrolet manufacturing and sales will be phased out. However, it seems that Isuzu light-commercial vehicle sales will continue.
The reason for the decision is apparently due to a change in “GM’s global business priorities.” The exit now begs the question, what happens to pre-agreed service plans for current Chevrolet vehicle owners; will warranties become null and void? According to GM Motors South Africa, “If you are an Isuzu, Chevrolet or Opel owner on-going aftersales and parts support will continue through the existing GM dealer network to the end of 2017. All existing warranties and service plans remain in place and will be honoured beyond 2017.”
They have also said that ” Ongoing aftersales and parts support will continue for all Isuzu, Chevrolet and Opel customers. All existing warranties and service plans remain in place and will be honoured.”
However, the overarching economic consequences could be vast – is this the beginning of a mass exodus of big business in SA? Only time will tell; there are many questions that need to be answered. We will keep you updated.