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, Oldsmobile, and Vauxhall.

• In 1986 GM disinvests from South Africa due to political pressures.

• Delta Motor Corporation was a South African car manufacturer, which was created through a management buy-out after General Motors (GM) divested from South Africa in 1986.

• In 1987 Delta Motor Corporation is formed.

• In 1997 General Motors Corporation purchased a 49% stake in Delta Motors Corporation.

• In 2004 GM returned to South Africa by purchasing the remaining 51%.

• In 2008 GMSA opened the new Vehicle Conversion and Distribution Centre. • In 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 1800 employees

Sales Volumes and Market Share

• Volumes sold in 2012: 69 968
• Passenger vehicles: 33 887
• Commercial vehicles: 36 081
• Market share in 2010: 11.2%
• Passenger vehicles: 7,7%
• Commercial vehicles: 32%

Brands and Products

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 Assembly

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
• 2010 – 2012 = R1 billion

Vehicle Conversion and Distribution Centre (VCDC)

The VCDC was opened 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 is currently at 94.1%
• Incidents per 1000 vehicles down to 4.8 from 7.5 in 2010

Able to process specific vehicle identification number (VIN) priority vehicles from port within 24 hours

Parts Distribution Centre (PDC)

The PDC was opened in 2010 consolidating GM’s four parts warehouses under one roof is full to capacity for expected future business growth. This world class state of the art facility, accommodates 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 and 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 2012 GMSA spent R9.8 million on educational programmes for employees and their dependants.

• Approximately 159 employees received tertiary qualifications through the company.
• Approximately 181 employee dependants received assistance towards tertiary qualifications.
• On average 1 591 scholarships were given to employee dependants in 2012.

Additional training programmes

• Grade 7 Mathematics Programme
• Ready for Success Programme
• Career Resource Programme
• Graduate-in-training programme
• In service training programme

Health and Wellness

With the slogan “Touch A Life” GMSA’s comprehensive Health and Wellness programme does not stop at Awareness programmes in the workplace. It extends to beyond awareness and reaches out to learners at High School level who are trained as peer counsellors and are encouraged to get involved in their own communities. Furthermore, our Peer educators consisting of representatives across the company continuously participate in outreach programmes.

Health and Wellness Programmes for employees include:

• Optimum Performance Focus Groups
• Partnering with local Gym for GMSA employees to use at no cost
• Peer Educator Training
• Women’s Day Activities & 16 Days of Activism
• Corporate Wellness Days
• Healthy lifestyle challenge by Prof Tim Noakes
• Back & Eye Awareness

Health and Wellness Awareness Programmes:

• World Elder Abuse Awareness
• Mental Health Awareness
• Diabetes Awareness
• Preparation for Retirement Workshops
• Domestic Violence awareness mob flashes

Keeping Retirees in touch

• GMSA has approximately 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

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
• From inception to date they have granted 39 projects
• To date they have invested R9 million in projects.
• More than 10 000 children have been reached through the Childlife Foundation support between 2010 and 2013.

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 Subsidy.

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.

Walmer Link

The Walmer Link project was established as an affordable rental option for poorer citizens of all races. Construction began in 2006 and was completed in 2011. It is divided into two developments: Houses for Social Rental and Affordable Housing for Sale. Walmer Link currently has 347 units and rental fees range from as little as R570 per month to R2 250 per month, depending on choice of apartment style and size.

• 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 Nelson Mandela bay

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 5 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