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General Motors cutting operational ties with SA

General Motors cutting operational ties with SA

General Motors is no longer convinced that its operations in South Africa are beneficial to the company, and has announced plans to sell its operations in the country.

The car manufacturer explained that the major question it has been grappling with in recent months is the profitability of its South African and other operations around the world. Management is trying to establish if growth in the so-called emerging markets is still a realistic goal or if the operations in those countries spend most of their time fixing problems.

South Africa will not be the only victim of this strategic review though, as plans to cut the sale of vehicles in India are also afoot.

The expectation is that the moves will eventually save the company in the region of $100-million a year.

Speaking to Reuters this week, GM President Dan Ammann said: "What are we spending our time doing? Are we spending time pursuing opportunities … or all of our time fixing problems?"

The figure being bandied about for motor vehicle sales in India and South Africa last year is 49 000. That is a combined figure, which has brought into sharp focus the failure of the company to flourish in both countries.

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