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GM to boost economy with Hummer contract
Posted on: Thursday, 14 April 2005. Article source: The Herald
General Motors SA has landed a prime export deal to build a smaller, civilian version of the American army’s heavy-duty utility vehicle, the Hummer, that will see more than R600- million invested in its Port Elizabeth plant.
The contract to supply an average of 10 000 vehicles a year between 2006 and 2012 is worth R18-billion to GMSA and will create 450 new, permanent jobs at the plant and more at component makers and suppliers.
The deal was announced yesterday by GMSA president and managing director Robert Socia at a briefing, attended by several GM global heavyweights, at the Kariega Park game reserve, where two examples of the new Hummer H3 were shown off to journalists.
The announcement of the GMSA deal comes barely two months after Volkswagen announced it would invest R300- million in a massive new bus and truck plant in Uitenhage, employing 400 people, for the domestic and export markets.
Besides the obvious financial benefits to the Eastern Cape, the GM deal brings prestige to Port Elizabeth too – it will be the only city outside the US to produce the Hummer H3.
The vehicles will be assembled at GMSA’s Struandale plant, which will benefit from a R600-million investment in product development and production facilities.
Socia said there would also be benefits to local suppliers.
“We must be smart in what we do. Suppliers must be competitive and opportunities will be there, specifically when we introduce the right-hand drive units.”
Initially, production will be of left-hand drive vehicles targeted at Europe, the Middle East and Asia. The right-hand drive units will be exported to the UK, Australia, New Zealand and other Asian markets. The Hummer will also be available in South Africa from mid-2007.
No possible pricing was given.
Socia said local suppliers would be identified for the right-hand drive assembly, as the company wanted to use as much local content as possible.
No targets have been set for local content.
“This would open opportunities on left-hand drive assembly and if we do well on this we could even export to the North American market.”
The bigger Hummer H1 and H2 models have been sold primarily in the US and Canada in the past, although GM began exporting the Hummer H2 to countries in Europe, Asia and the Middle East in 2004.
“Hummer’s iconic design and unparalleled off-road performance are recognised around the world,” Hummer general manager Susan Docherty said.
Maureen Kempston-Darkes, president of GM Latin America, Africa and the Middle East, said the H3s exported from South Africa had the size and features to expand the appeal of the Hummer brand to an international audience. The vehicle will be fitted with a Vortec inline five-cylinder engine, with automatic or manual gearbox and a full-time four-wheel drive system.
A diesel version of the H3 will also be released later down the line.
On the benefits to the company from the Motor Industry Development Programme, Socia said this contract would further strengthen their import opportunities.
Under the MIDP, motor manufacturers gain import credits on the number of vehicles they export. To date GMSA has been able to import the fully built-up Astra and Saab on the back of catalytic converter exports.
“We have done really well on the components, but we really needed this,” said Socia. He was confident government would continue to support the industry through this programme, which is under review.
Ian Nicholls, GMSA’s planning director, said the Struandale facility would be increasing production capacity by introducing two shifts. He said full capacity to meet the 10 000 units a year order would be achieved in about three to four years.
“This investment signifies GM’s confidence in our organisation and our ability to compete on a global basis by delivering high-quality products that meet global customer expectations,” said Socia.
The contract and resultant investment, including establishing a retail network, further demonstrated the company’s commitment to the region. The company recently invested R300-million in facility and equipment upgrades and about R500-million in the Isuzu KB range.
The latest contract joins an increasingly string of export wins for automotive manufacturers in the province. Now the PE-based GMSA will build Hummers to a wide range of overseas markets.
General Motors SA has landed a prime export deal to build a smaller, civilian version of the American army’s heavy-duty utility vehicle, the Hummer, that will see more than R600- million invested in its Port Elizabeth plant.
The contract to supply an average of 10 000 vehicles a year between 2006 and 2012 is worth R18-billion to GMSA and will create 450 new, permanent jobs at the plant and more at component makers and suppliers.
The deal was announced yesterday by GMSA president and managing director Robert Socia at a briefing, attended by several GM global heavyweights, at the Kariega Park game reserve, where two examples of the new Hummer H3 were shown off to journalists.
The announcement of the GMSA deal comes barely two months after Volkswagen announced it would invest R300- million in a massive new bus and truck plant in Uitenhage, employing 400 people, for the domestic and export markets.
Besides the obvious financial benefits to the Eastern Cape, the GM deal brings prestige to Port Elizabeth too – it will be the only city outside the US to produce the Hummer H3.
The vehicles will be assembled at GMSA’s Struandale plant, which will benefit from a R600-million investment in product development and production facilities.
Socia said there would also be benefits to local suppliers.
“We must be smart in what we do. Suppliers must be competitive and opportunities will be there, specifically when we introduce the right-hand drive units.”
Initially, production will be of left-hand drive vehicles targeted at Europe, the Middle East and Asia. The right-hand drive units will be exported to the UK, Australia, New Zealand and other Asian markets. The Hummer will also be available in South Africa from mid-2007. No possible pricing was given.
Socia said local suppliers would be identified for the right-hand drive assembly, as the company wanted to use as much local content as possible. No targets have been set for local content.
“This would open opportunities on left-hand drive assembly and if we do well on this we could even export to the North American market.”
The bigger Hummer H1 and H2 models have been sold primarily in the US and Canada in the past, although GM began exporting the Hummer H2 to countries in Europe, Asia and the Middle East in 2004.
“Hummer’s iconic design and unparalleled off-road performance are recognised around the world,” Hummer general manager Susan Docherty said.
Maureen Kempston-Darkes, president of GM Latin America, Africa and the Middle East, said the H3s exported from South Africa had the size and features to expand the appeal of the Hummer brand to an international audience. The vehicle will be fitted with a Vortec inline five-cylinder engine, with automatic or manual gearbox and a full-time four-wheel drive system.
A diesel version of the H3 will also be released later down the line.
On the benefits to the company from the Motor Industry Development Programme, Socia said this contract would further strengthen their import opportunities. Under the MIDP, motor manufacturers gain import credits on the number of vehicles they export. To date GMSA has been able to import the fully built-up Astra and Saab on the back of catalytic converter exports.
“We have done really well on the components, but we really needed this,” said Socia. He was confident government would continue to support the industry through this programme, which is under review.
Ian Nicholls, GMSA’s planning director, said the Struandale facility would be increasing production capacity by introducing two shifts. He said full capacity to meet the 10 000 units a year order would be achieved in about three to four years.
“This investment signifies GM’s confidence in our organisation and our ability to compete on a global basis by delivering high-quality products that meet global customer expectations,” said Socia.
The contract and resultant investment, including establishing a retail network, further demonstrated the company’s commitment to the region. The company recently invested R300-million in facility and equipment upgrades and about R500-million in the Isuzu KB range.
The contract to supply an average of 10 000 vehicles a year between 2006 and 2012 is worth R18-billion to GMSA and will create 450 new, permanent jobs at the plant and more at component makers and suppliers.
The deal was announced yesterday by GMSA president and managing director Robert Socia at a briefing, attended by several GM global heavyweights, at the Kariega Park game reserve, where two examples of the new Hummer H3 were shown off to journalists.
The announcement of the GMSA deal comes barely two months after Volkswagen announced it would invest R300- million in a massive new bus and truck plant in Uitenhage, employing 400 people, for the domestic and export markets.
Besides the obvious financial benefits to the Eastern Cape, the GM deal brings prestige to Port Elizabeth too – it will be the only city outside the US to produce the Hummer H3.
The vehicles will be assembled at GMSA’s Struandale plant, which will benefit from a R600-million investment in product development and production facilities.
Socia said there would also be benefits to local suppliers.
“We must be smart in what we do. Suppliers must be competitive and opportunities will be there, specifically when we introduce the right-hand drive units.”
Initially, production will be of left-hand drive vehicles targeted at Europe, the Middle East and Asia. The right-hand drive units will be exported to the UK, Australia, New Zealand and other Asian markets. The Hummer will also be available in South Africa from mid-2007.
No possible pricing was given.
Socia said local suppliers would be identified for the right-hand drive assembly, as the company wanted to use as much local content as possible.
No targets have been set for local content.
“This would open opportunities on left-hand drive assembly and if we do well on this we could even export to the North American market.”
The bigger Hummer H1 and H2 models have been sold primarily in the US and Canada in the past, although GM began exporting the Hummer H2 to countries in Europe, Asia and the Middle East in 2004.
“Hummer’s iconic design and unparalleled off-road performance are recognised around the world,” Hummer general manager Susan Docherty said.
Maureen Kempston-Darkes, president of GM Latin America, Africa and the Middle East, said the H3s exported from South Africa had the size and features to expand the appeal of the Hummer brand to an international audience. The vehicle will be fitted with a Vortec inline five-cylinder engine, with automatic or manual gearbox and a full-time four-wheel drive system.
A diesel version of the H3 will also be released later down the line.
On the benefits to the company from the Motor Industry Development Programme, Socia said this contract would further strengthen their import opportunities.
Under the MIDP, motor manufacturers gain import credits on the number of vehicles they export. To date GMSA has been able to import the fully built-up Astra and Saab on the back of catalytic converter exports.
“We have done really well on the components, but we really needed this,” said Socia. He was confident government would continue to support the industry through this programme, which is under review.
Ian Nicholls, GMSA’s planning director, said the Struandale facility would be increasing production capacity by introducing two shifts. He said full capacity to meet the 10 000 units a year order would be achieved in about three to four years.
“This investment signifies GM’s confidence in our organisation and our ability to compete on a global basis by delivering high-quality products that meet global customer expectations,” said Socia.
The contract and resultant investment, including establishing a retail network, further demonstrated the company’s commitment to the region. The company recently invested R300-million in facility and equipment upgrades and about R500-million in the Isuzu KB range.
The latest contract joins an increasingly string of export wins for automotive manufacturers in the province. Now the PE-based GMSA will build Hummers to a wide range of overseas markets.
General Motors SA has landed a prime export deal to build a smaller, civilian version of the American army’s heavy-duty utility vehicle, the Hummer, that will see more than R600- million invested in its Port Elizabeth plant.
The contract to supply an average of 10 000 vehicles a year between 2006 and 2012 is worth R18-billion to GMSA and will create 450 new, permanent jobs at the plant and more at component makers and suppliers.
The deal was announced yesterday by GMSA president and managing director Robert Socia at a briefing, attended by several GM global heavyweights, at the Kariega Park game reserve, where two examples of the new Hummer H3 were shown off to journalists.
The announcement of the GMSA deal comes barely two months after Volkswagen announced it would invest R300- million in a massive new bus and truck plant in Uitenhage, employing 400 people, for the domestic and export markets.
Besides the obvious financial benefits to the Eastern Cape, the GM deal brings prestige to Port Elizabeth too – it will be the only city outside the US to produce the Hummer H3.
The vehicles will be assembled at GMSA’s Struandale plant, which will benefit from a R600-million investment in product development and production facilities.
Socia said there would also be benefits to local suppliers.
“We must be smart in what we do. Suppliers must be competitive and opportunities will be there, specifically when we introduce the right-hand drive units.”
Initially, production will be of left-hand drive vehicles targeted at Europe, the Middle East and Asia. The right-hand drive units will be exported to the UK, Australia, New Zealand and other Asian markets. The Hummer will also be available in South Africa from mid-2007. No possible pricing was given.
Socia said local suppliers would be identified for the right-hand drive assembly, as the company wanted to use as much local content as possible. No targets have been set for local content.
“This would open opportunities on left-hand drive assembly and if we do well on this we could even export to the North American market.”
The bigger Hummer H1 and H2 models have been sold primarily in the US and Canada in the past, although GM began exporting the Hummer H2 to countries in Europe, Asia and the Middle East in 2004.
“Hummer’s iconic design and unparalleled off-road performance are recognised around the world,” Hummer general manager Susan Docherty said.
Maureen Kempston-Darkes, president of GM Latin America, Africa and the Middle East, said the H3s exported from South Africa had the size and features to expand the appeal of the Hummer brand to an international audience. The vehicle will be fitted with a Vortec inline five-cylinder engine, with automatic or manual gearbox and a full-time four-wheel drive system.
A diesel version of the H3 will also be released later down the line.
On the benefits to the company from the Motor Industry Development Programme, Socia said this contract would further strengthen their import opportunities. Under the MIDP, motor manufacturers gain import credits on the number of vehicles they export. To date GMSA has been able to import the fully built-up Astra and Saab on the back of catalytic converter exports.
“We have done really well on the components, but we really needed this,” said Socia. He was confident government would continue to support the industry through this programme, which is under review.
Ian Nicholls, GMSA’s planning director, said the Struandale facility would be increasing production capacity by introducing two shifts. He said full capacity to meet the 10 000 units a year order would be achieved in about three to four years.
“This investment signifies GM’s confidence in our organisation and our ability to compete on a global basis by delivering high-quality products that meet global customer expectations,” said Socia.
The contract and resultant investment, including establishing a retail network, further demonstrated the company’s commitment to the region. The company recently invested R300-million in facility and equipment upgrades and about R500-million in the Isuzu KB range.
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