General Motors South Africa Overview



General Motors South Africa (GMSA) is a wholly owned subsidiary of internationally based General Motors Company. With its head office and assembly plants in Port Elizabeth, the company began distributing Chevrolet vehicles since 1913 and began manufacturing in 1926.



Historical Background
  • In 1913 GMSA was established and began distributing Chevrolet vehicles
  • In 1926 GMSA started assembling vehicles producing brands such as Chevrolet, Oakland, GMC trucks, Buick, Pontiac, Oldmobile and Vauxhall
  • 1986 GM disinvets from South Africa due to political pressures
  • 1987 Delta Motor Corporation is formed
  • 1997 General Motors Corporation purchased 49% stake in Delta Motors Corporation
  • 2004 GM Returned to South Africa by purchasing remaining 51%
  • 2008 GMSA opened the new Vehicle Conversion and Distribution Centre
  • 2010 GMSA opened the new Parts Distribution Centre
GMSA Overview

  • Headquarters and assembly operations located in Port Elizabeth
  • Main sales office in Woodmead, Johannesburg
  • with regional Offices in Durban and Cape Town
  • 137 dealers throughout the country
  • Brands marketed and sold by GMSA: Chevrolet, Opel and Isuzu
  • Approximately 1900 employees
Sales volumes and Market share

  • Volumes sold in 2010: 54 855
  • Passenger vehicles: 26 067
  • Commercial vehicles: 28 788

  • Market share in 2010: 11.1%
  • Passenger vehicles: 7,7%
  • Commercial vehicles: 18,5%
Brands and products

Chevrolet Opel Isuzu
Spark Lite Corsa (4400) -  5 door & 3 door KB Single Cab Petrol
New Spark Astra KB Double Cab Petrol
Aveo Vivaro KB Single Cab Diesel
Cruze Combo KB Double Cab Diesel
Captiva KB Extended Cab Petrol
Lumina KB Extended Cab Diesel
Corsa Utility Isuzu N Series Trucks
Orlando Isuzu E Series Trucks
Isuzu F Series Trucks
 
GMSA Assembly Locations

Kempston Road

  • Property - 36 hectares
  • Buildings - 179 245 m2
  • Initial construction early 1930's
  • Final plant construction 1960's
  • Facilities: Body Shop and Truck Assembly

Struandale

  • Property - 37 hectares
  • Buildings - 75 625 m2
  • Purchased by GM in 1994
  • Final plant construction 1960's
  • Facilities: Body Shop, Paint Shop, General Assemby
Part of a Global Company

  • A key part of our global integration has been the ability to access world class GM expertise across many disciplines in support of improving manufacturing methods and product quality.
  • We have implemented GM's Global Manufacturing System (GMS) which revolves around the principles of standardisation, built in quality, people involvement, short lead times and continuous improvement.
  • With the GMS, GMSA's manufacturing processes are aligned with GM plants around the world. In this way and using the vision of "Becoming the Best in Quality" GMSA is striving towards this goal.
Investment Spend

Production facilities

  • 2004-2007 = R2.6 billion
  • 2008 = R200 million
  • 2009 = R160 million
  • 2011 = R530 million
Vehicle Conversion and Distribution Centre (VCDC)

The VCDC was opend in 2008 with the purpose of consolidating logistical and upfitment activity under one roof. It is a one stop shop for vehicle inspection, upfitment, service and storage facility.

Locally produced and imported vehicles brought to VCDC from where the units are distributed to the dealers across the country either by rail or road.

  • Location: Aloes Industrial Park (close to Coega)
  • Investment value: R150 million investment
  • Size: 33 hectares
  • Capacity: 8,500 units
VCDC Efficiencies
  • Delivery reliability currently at 95.6%- up from 74% in 2007
  • Incidents per 1000 vehicles down to 7.54 from 15.7 in 2007
  • Single Unit Pack* (SUP) processing time to stock down to average less than 2 days from 21 days in 2007
  • Able to process specific cehicle identification number (VIN) priority vehicles from port within 24 hours
  • State of the art wash bay facility resulted in R1.5 million saving in 2010 by washing imported units on site at VCDC
  • On-time vehicle delivery improved from 83% in 2008 to 93% in 2010
  • Average processing time for imported units reduced from 8 days in 2008 to less than two days in 2010

    *Fully imported units
Parts Distribution Centre (PDC)

The PDC was opend in 2010 consolidating GM's four parts warehouses under one roof is fully capacitised for expected future business growth. This world class state of the art facility, accomodates 144 000 part numbers, using nine different storage methods.

  • Location: Coega Industrial Development Zone
  • Investment value: R250 million
  • Size of Plot: 85 000 square metres
  • Size of facility: 38 000 square metres
Benefits of PDC

  • Improved capacity and operating efficiency
  • Distribute spare parts to 21 wholesalers, 137 dealers in Southern Africa
  • All parts annd accessories are stored under one roof
  • Logistical efficiency: Movements are now from one central point
  • The ability to achieve high quality standards
  • Elimination of waste
  • Short lead times to deliver parts and accessories to customers
Vehicle and Component Exports Markets


  • General Motors sees great opportunity to grow sales volumes in Sub-Saharan Africa
  • General Motors has a presence in 41 markets in Sub-Saharan Africa
  • Last year the company occupied the leadership position in Kenya for the first time in 35 years
  • Our strengthened partnership with Isuzu provides us with the opportunity to expand Isuzu exports into many of these markets

Through GMSA's supplier base the company exports components to a number of countries.
Components Exported

  • Catalytic converters, Stainless steel exhaust components, Engine related party, Car jacks and Door locks.

Component Export Markets

  • United States, Mexico, Europe, South America, Australia, Thailand and China
GMSA Education Assistance Programmes

In 2010 GMSA spent R10 million on educational programmes for employees and their dependants.

  • On average 330 employees receive tertiary qualifications through the company every year.
  • On average 250 employee dependants receive tertiary qualifications every year
  • On average 1 900 scholarships are given to emplyee dependants every year.

Additional training programmes

  • Grade 7 Mathematics Programme
  • Ready for Success Programme
  • Career Resource Programme
  • Graduate-in-training programme
  • In service training programme
Reaching out to the vulnerable

With the slogan, Touch a Life, GMSA's comprehensive HIV/Aids programme does not stop at awareness drives in the workplace. It extends beyond awareness and reaches out to learners at high school level who are trained as peer counselors and are encouraged to get involved in their own communities.

Furthermore, our Peer Educator, consisting of representatives across the company continuously participate in outreach programmes.

Keeping Retirees in touch

  • GMSA has 2 000 retirees and has a dedicated programme to keep them socially, economically and physically active in the community. They receive regular training in skills development and are encouraged to participate in social and sporting activities.
  • Retirees enjoy the medical services of a fully equipped on-site primary health care facility valued at R4 million per annum
  • Retirees have dedicated on-site social workers who tend to their social needs.
Community Projects



GMSA corporate social responsibility focus is underpinned by the company's commitment to making a difference in the community. With a focus in sustainable educational projects GMSA aims to eliminate unemployment, poverty and crime.

Educational initiatives include:

  • Weekly Matric supplements in local newspapers
  • Educational aid to blind and partially sighted grade R learners
  • Maintenance support to township schools
  • Rally to Read
  • Chair in Mechatronics
  • Keep our children safe initiative

Community Safety

  • Flying Squad support: In making sure that the community in which we live and work is safe, GMSA donated three high performance vehicles to the Port Elizabeth Flying Squad two years ago. This year three high performance Chevrolet Luminas are being donated to the Flying Squad. In addition, safe driver training was provided to the Flying Squad to ensure ongoing safety of the our residents
  • I-Patrol: GMSA joined forces with regional radio station, Algoa FM and Williams Hunt in Port Elizabeth to provide vehicles to eight community police forums in the city that enable them to fight crime.
GMSA Childlife Foundation

GMSA and its dealer network across the country established a new community initiative, the GMSA Childlife Foundation. The main objective of the Childlife Foundation is to make an impact on the lives of children in local communities

  • Projects got underway in June 2010
  • Within the first 12 months 14 projects were supported
  • Grants paid out in 2010 amounted to R924 000
  • Commitments for 2011 amount to R1.9 million
  • More than 4000 children have been reached through the Childlife Foundation support.
GMSA Foundation

The GMSA Foundation follows a process of undertaking the project management of innovative education and housing projects in the Eastern Cape, usually within the Nelson Mandela Bay area, and writing up all the lessons learnt in the form of practical Implementation guidelines. This information is then shared with interested organisations across the country in order to promote the replication of successful new development models and to influence the State in the formulation of practical policies.

Housing Projects:

Abahlali:

The Abahlali Housing Association was a Social Housing Institution established in 1997. The project targeted families earning between R1500 and R3500 per month who were stably employed and eligible for the Government's Institutional Housing Susidy.

Sakhasonke:

Sakhasonke Village was established to meet critical housing needs. The village consists of 337 freehold units financed by the State's capital subsidy fund for families with monthly incomes of below R1500.


  • Over the past few years the Foundation has won a number of awards (national and international) for its housing and educational initiatives
  • Sakhasonke and Abahlali are examples of key housing projects which the Foundation has implemented in Nelson Mandela Bay
  • The Foundation's housing has been successfully adopted and rolled out in the Western Cape
  • The Western Cape Education department is using the Foundation's District Office Model which has also been rolled out in the Eastern Cape
  • The foundation's Peace Education project has been successfully rolled out in Gauteng and Neldon Mandela bay
  • This year the Foundation is assisting 120 schools

Educational Projects:

  • Maths literacy
  • Peace education
  • School principal enrichment programme
  • Ready for Success
  • Circuit team project
Broad Based Black Economic Empowerment (BBBEE)

  • GMSA is a level 6 contributor. As a foreign owned company we continuously strive to improve the status of our scorecard. The company is committed to BBBEE and believes it will build a strong foundation for the future.
  • We are committed to the transformation of our organisation to one which has a high performance team and who are representative of the demographics of this country.
  • Our commitment to BBBEE transcends the achievement of just points on a scorecard