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Creamer Media's Engineering News Online, South African Industry News :: News This Week

Creamer Media's Engineering News Online, South African Industry News :: News This Week
John Hitch  |  by www.engineeringnews.co.za. All rights reserved. 10.11 | 17:09

GM and Isuzu to set up new SA trucking venture
With #x201C;our truck performance not what we want it to be #x201D;, General Motors South Africa (GMSA) and Japanese truck maker Isuzu Motors Limited Japan have each invested R40-million in a 50:50 partnership to form Isuzu Truck South Africa (Itsa), says GMSA sales and marketing director Malcolm Gauld.

GMSA #x2019;s responsibility for the Isuzu truck range within South Africa will end in December, should the Competition Commission approve the formation of the new company.

Itsa will take over the distribution and and Mauritius #x2013; for all Isuzu trucks from 3,5 t upwards.

GMSA will continue to hold distribution responsibility for the Isuzu KB pick-up range.

Isuzu trucks will continue to be assembled by GMSA at its Port Elizabeth truck assembly plant, under a contract agreement with Itsa. increased sales volumes, as well as to allow for an expanded model offering.

The cost of this is not yet known.

Current planning includes the addition of a second shift from 2008.

The current Isuzu truck national retailer network is also set to undergo facility upgrades to the value of some R350-million over a two-year period, says newly-appointed Itsa COO Craig Uren.



#x201C;We will be launching new Isuzu truck degree due to what he terms the #x201C;increased success and acceptance of Isuzu trucks in Southern Africa #x201D;.

He notes that 2004 sales #x2013; in a bouyant local commercial-vehicle market #x2013; showed a 40,7% increase over 2003, a further 22,9% growth in 2005, with the forecast for 2006 being a further increase of 30%. #x201C;This growth rate has stretched the currently shared resources, particularly in the service and technical support fields, prompting the move to a dedicated organisation.



#x201C;With the current growth rate in the South African economy, logistics requirements will continue to expand, while the country still has a very real need for an efficient public transport system. extension of the rest of the GMSA franchise #x2013; we have to do things differently, #x201D; says Uren.

Itsa CFO Arthur Boyle notes that the #x201C;Isuzu truck brand is poised for growth #x201D;, and able to double its current market share of around 17% in the truck market.



He adds that the partnership will also allow for heavier Isuzu trucks to enter the local market, such as those used in the construction industry.

Uren says these extra-heavy commercial vehicles are currently being tested, and #x201C;will roll out in the near future #x201D;.

Itsa will operate as a separate legal entity, with offices located in Woodmead, Sandton.

It will have a staff complement of around 50 people, responsible for all truck marketing, sales, service, customer support, product development and engineering support.

Read more on by www.engineeringnews.co.za. All rights reserved.
Keywords: Isuzu Truck, South Africa, South African
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