GENERAL MOTORS IS continuing its investment in the Eastern Cape by purchasing the Delta Motor Corporation based in Port Elizabeth. Delta assembles General Motors brands such as Opel and Isuzu and distributes and supports the General Motors range in South Africa. The company was formed through a management buy-out when General Motors pulled out of South Africa in the 1980’s as part of international sanctions against the apartheid government. Since the first democratic election in 1994 General Motors has acquired 49 per cent of Delta. It has now signalled that it wants to purchase the remaining shares. "General Motors Corporation has resumed negotiations with Delta Motor Corporation with a view to potentially acquiring a majority shareholding in the company," says Willie van Wyk, Managing Director of Delta Motor Corporation. "Discussions, which commenced in September 2001, were temporarily shelved due to the uncertainty which was created as a result of global events at that time." Both parties have signed a letter of intent, confirming the commencement of negotiations. South African Minister of Trade and Industry Alec Erwin, commended both parties on this initiative, saying that it was a step in the right direction. "I believe that the potential return of General Motors marks a very important step forward in the South African automobile industry. It is a statement of confidence in the achievements of Delta and in the future of the South African industry." Both parties say further discussions are required before an agreement can be achieved. More detailed information will be supplied if an agreement is reached by both parties. Background notes: General Motors first set up operations in South Africa over 76 years ago when they established a factory in Port Elizabeth. In 1987, as a result of the political climate in the country at that time, General Motors took the decision to disinvest from South Africa. This was followed by the buy-out of the company by a local management group, who soon afterwards launched Delta Motor Corporation. Delta Motor Corporation has grown and matured to emerge as a competitive and enthusiastic player in both the South African and global automotive arena. In excess of 16 premier awards, including three Car of the Year Awards and a Top Non-listed Company Award, add weight to the reputation of a company which is widely recognised for its steadfast commitment to social investment and to the highest quality standards in its products and services. In 1997 General Motors, recognising Delta's tenacity and successes in the South African market, purchased a 49 per cent shareholding in Delta Motor Corporation.