This after the US company announced on Monday that it will rebuild itself under a court supervision as opposed to liquidation. Accordingly, business operations will continue while the company works with creditors to arrange a solution under court supervision.
“GM South Africa is not part of this filing in the US and will not be affected by the measures announced.
“Creditors of GM in the US would have no claims on GMSA as we have not guaranteed any US obligations nor are any of our assets used as security for their obligations,” said Koch.
GMSA continues to generate its own money as well as being a self sustaining operation that will continue to operate as normal, he said.
Since early last year, Koch said GMSA had taken the required actions to align the company in a way which will make it globally competitive and allow it to sustain operations at low key industries while putting GMSA in a strong position when markets recover from the financial crisis.
“We have successfully stabilised our cash balance, reduced inventory levels and continue to make progress reducing our structural costs, all directed at ensuring profitable growth in South Africa,” said Koch.
The company as well as its distribution partners will continue providing sales and after-sales while also honouring all vehicle warranties, service and maintenance plans for Chevrolet, IsuZu, Opel, Hummer, Saab and Cadilac brands.
The company remained committed to ongoing investments in its South African operations.
“We remain committed to the ongoing investment in our South African operations and together with our dealers have invested R4 billion since 2004,” said Koch.
The company has operated in South Africa since 1926.
Article published courtesy of BuaNews
