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GMSA put R500m in Isuzu infrastructure
Posted on: Friday, 09 July 2004. Article source: Business Report
General Motors SA (GMSA) has invested more than R500 million in its new fifth-generation Isuzu KB bakkie. The investment is largely for tooling and facilities development at its Kempston Road assembly plant in Port Elizabeth.
The firm's spokesperson Denise van Huyssteen said that the investment in the recently launched bakkie was the biggest single product line investment in the history of the company.
The vehicle was produced for the domestic market and five right-hand drive export markets which include Malawi, Mozambique, Zimbabwe, Kenya, Zambia and Mauritius.
In addition to the R500 million investment, the company planned to spend R500 million a year on procuring parts from local direct material suppliers. A significant number of its almost 100 South African suppliers are based in the Eastern Cape and these will provide a solid supplier base for the Isuzu product line.
Van Huysteen said R200 million of the R500 million investment was used to improve production facilities and increase assembly capacity for the Isuzu KB by 25 per cent.
The new Isuzu KB required a further R150 million capital expenditure on sheet metal tooling, while R160 million was spent on local supplier tooling and engineering specifications.
GMSA said it would leverage the highly competitive qualities of the Isuzu KB to aggressively grow its market share in the light commercial vehicle segment.
The firm's spokesperson Denise van Huyssteen said that the investment in the recently launched bakkie was the biggest single product line investment in the history of the company.
The vehicle was produced for the domestic market and five right-hand drive export markets which include Malawi, Mozambique, Zimbabwe, Kenya, Zambia and Mauritius.
In addition to the R500 million investment, the company planned to spend R500 million a year on procuring parts from local direct material suppliers. A significant number of its almost 100 South African suppliers are based in the Eastern Cape and these will provide a solid supplier base for the Isuzu product line.
Van Huysteen said R200 million of the R500 million investment was used to improve production facilities and increase assembly capacity for the Isuzu KB by 25 per cent.
The new Isuzu KB required a further R150 million capital expenditure on sheet metal tooling, while R160 million was spent on local supplier tooling and engineering specifications.
GMSA said it would leverage the highly competitive qualities of the Isuzu KB to aggressively grow its market share in the light commercial vehicle segment.
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