S.A. General Motors Not Going Under

GM fans the world over were arguably in mourning recently when American President, Barack Obama, effectively read the last rites of a company that has been making headlines for 100 years. The biggest company in the world not that long ago has now become the biggest failure in American history.

Fortunately, GMSA is an animal unto itself and will not be dragged down with its ailing parent company.

General Motors under court supervision in the US
Even though the Americans are trying their darndest to dumb the epic fall of one of their industrial giants down, calling it a ‘re-invention phase' instead of the usual, ugly-sounding ‘liquidation', the hard fact is that the company is under court supervision.

Fortunately for GMSA, the powers-that-be took the unprecedented step of re-aligning the local business in 2008 in an effort to sustain its global competitiveness. It's now in the providential position of being able to sustain its operations at the current dismally low industry levels while having ensured it is also well positioned to increase volume profitability as soon as the anticipated upswing in the global market kicks in; a situation that will hopefully happen as early as next year.

US creditors have no claims on GMSA
The top brass of General Motors South Africa have gone out of their way to allay the fears of the hundreds of thousands of local GM supporters with the assurance that US creditors have absolutely no claims on GMSA and that none of the assets of the local company were used as security for the obligations of the "mother ship".

Car dealers affiliated to General Motors will continue to provide full sales and after-sales support for the entire GMSA range, comprising Chevrolet, Isuzu, Opel, Saab and Cadillac brands. The Hummer brand, however, was recently sold off to a Chinese concern and the H3 will no longer be produced in South Africa.

GMSA will provide the usual after-sales support
Owners of GM brands, or prospective buyers of new cars or used cars belonging to the GMSA stable, will be provided with the usual warranties, service and maintenance plans and will be able to tap into regular parts supply.

The good news for GMSA fans is that the local motor group, together with dealers, has invested over R4 billion into the country since 2004. Combine that with the construction of a new Pan African parts distribution centre, valued at R250 million and it seems highly unlikely that the GM presence in South Africa will disappear anytime soon.


Reeds Motor Group offers the largest range of guaranteed used cars in Cape Town, and great deals on new cars too! We retail Opel, Isuzu, Chevrolet, Saab, Hummer and Cadillac.