General Motors and Isuzu Motors have signed a framework agreement focused on increasing co-operation and strengthening the relationship between the two firms, as well as increasing the level of involvement of Isuzu in GM’s South African operations.
The primary objective of the agreement is to ensure that the South African manufacturing operations are well positioned to assemble light commercial vehicles (LCVs) one a high-volume basis for both domestic and export markets, while continuing to provide Chevrolet, Opel and Isuzu vehicles.
GM says that the agreement serves as confirmation of its “commitment to the long-term future of its operations in South Africa”. It will provide more details once discussions have been completed over the next year.
GM and Isuzu collaborate closely on manufacturing operations for the African continent, which are based in South Africa, Kenya, and Egypt, as well as in distributing vehicles around the continent. The two automakers have also been partners in South Africa for nearly a decade via a joint venture for building and distributing medium and heavy commercial trucks.
In addition, GM markets the Isuzu passenger car brand in South Africa. Building quite the presence after roughly four decades in the market, the Isuzu brand commands a 14 percent share of the one ton segment and also a 15 percent share of the medium and heavy commercial truck market.
This agreement follows an accord between the two automakers to sell Isuzu’s medium-duty, cab-forward trucks in the United States under the Chevrolet brand.