General Motors recently made some big changes to its international operations. Notably, GM will cease selling vehicles in India—though it will continue building them there for export—and it will exit the South African market entirely.
Now, the fallout of the announcement begins. Reuters reports GM will cut 600 jobs in South Africa following its announcement to exit the market. GM employs 1,500 in total in South Africa.
The National Union of Metalworkers of South Africa (NUMSA) confirmed the job cuts after GM issued layoff noticed required by law.
GM will sell its Strundale plant to Isuzu. The Japanese automaker will also purchase GM’s 30 percent share in the Isuzu Truck South Africa joint venture. Chevrolet will be phased out of the country by the end of this year.
As for Opel, which has been sold in the market under GM leadership, the U.S. automaker and Opel’s forthcoming owner, PSA Groupe, are evaluating the brand’s future in the country.
GM has stated all existing customers will continue to be supported in the market.