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News Article - Automotive
GM has success with local Hummer
Posted on: Friday, 23 September 2005. Article source: Business Report
The first two months' planned supply of the Hummer H3, the mid-size sports utility vehicle (SUV) that is to be assembled at the Port Elizabeth plant of General Motors South Africa (GMSA) for the local and export markets, is already committed.
Tim Hendon, a GMSA spokesperson, said on Monday that interest in the distinctive vehicle had grown since the company's announcement in April that the Hummer H3 would be built at its Stuandale plant in Port Elizabeth.
The award of the R18 billion, six-year contract to GMSA for the assembly of the Hummer H3 was expected to create about 450 job opportunities at GMSA and its suppliers.
Hendon said Hummer models were synonymous with "awesome" off-road capability and street presence but until now had only been available in left-hand drive.
"With South African H3 production for global consumption and export coming on-stream from the middle of 2006 in left-hand drive and from early 2007 in right-hand drive, Hummers are set to appeal to a much broader audience around the world.
"The benefit of local production should translate into a substantial pricing advantage over the largely imported competition," he said.
Hendon said local distribution outlets for the Hummer H3 would be rolled out during 2007 to cover all major centres in South Africa.
This was seen as an integral part of GMSA's premium brand strategy.
South Africa would be the only manufacturing site outside the US to build the Hummer H3 and GMSA was investing more than R600 million into product development and production related to the project.
The award of the contract to GMSA follows General Motors Corporation in January last year reaching agreement with Delta Motor Corporation to acquire the remaining 51 percent in the company it did not own for an undisclosed amount. Delta subsequently changed its name to GMSA
Tim Hendon, a GMSA spokesperson, said on Monday that interest in the distinctive vehicle had grown since the company's announcement in April that the Hummer H3 would be built at its Stuandale plant in Port Elizabeth.
The award of the R18 billion, six-year contract to GMSA for the assembly of the Hummer H3 was expected to create about 450 job opportunities at GMSA and its suppliers.
Hendon said Hummer models were synonymous with "awesome" off-road capability and street presence but until now had only been available in left-hand drive.
"With South African H3 production for global consumption and export coming on-stream from the middle of 2006 in left-hand drive and from early 2007 in right-hand drive, Hummers are set to appeal to a much broader audience around the world.
"The benefit of local production should translate into a substantial pricing advantage over the largely imported competition," he said.
Hendon said local distribution outlets for the Hummer H3 would be rolled out during 2007 to cover all major centres in South Africa.
This was seen as an integral part of GMSA's premium brand strategy.
South Africa would be the only manufacturing site outside the US to build the Hummer H3 and GMSA was investing more than R600 million into product development and production related to the project.
The award of the contract to GMSA follows General Motors Corporation in January last year reaching agreement with Delta Motor Corporation to acquire the remaining 51 percent in the company it did not own for an undisclosed amount. Delta subsequently changed its name to GMSA
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