Isuzu Motors has acquired a majority stake of 57.7% in General Motors East Africa (GMEA) for an undisclosed amount
Japanese automaker Isuzu Motors Limited has acquired a majority stake of 57.7 percent in General Motors East Africa (GMEA) from the parent company General Motors Co. for an undisclosed amount. This deal will see to it that the General Motors East Africa (GMEA) changes its name to Isuzu East Africa come April this year to reflect the change in control.
“Isuzu will acquire 57.7% of the GM-owned GMEA stocks to become a subsidiary of Isuzu Motors. As the result, GMEA’s company name will be renewed in April, 2017. The new name will be ‘ISUZU EAST AFRICA’.”
-via company statement
According to Isuzu, the company is making this investment with the intention of expanding its commercial vehicle production and sales in Eastern Africa. Rita Kavashe will continue as Managing Director under the new ownership structure. As a result of this transaction the new structure of major shareholders at the new company Isuzu East Africa will be as follows:
- Isuzu – 57.7 percent
- Industrial and Commercial Development Corporation (ICDC) – 20 percent
- Centum Investments – 17.8 percent
- Itochu Corporation – 4.5 percent
Since its establishment in 1975, GMEA has been engaged in assembly and sales of Isuzu-badged light and mid-duty trucks and buses, and import and sales of Isuzu pickup trucks and Chevrolet passenger cars.
Isuzu will make this investment aiming at further quality improvement, vehicle sales expansion and aftersales service enhancement. For these purposes, Isuzu will provide the company in East Africa with as much assistance as possible in the fields of personnel training, manufacturing technique and enhancement of aftersales business.
The current market share of GMEA stands at 31.5 percent making it the market leader with Isuzu commercial trucks and buses accounting for over 95 percent of the company’s regional sales. Isuzu East Africa will deal with the following line of businesses:
- CKD kits-based assembly and sales of Isuzu trucks and buses
- import and sales of Isuzu pickup trucks
- parts supply
- after-sales servicing
The sale of Isuzu Motors will be completed after all the necessary approvals have been sought from the Competition Authority of Kenya and COMESA and will have no impact on jobs. As for Chevrolet customers, they will continue to receive after sales and service support even as Detroit-based GM takes away its Chevrolet franchise from GMEA as part of the termination of the alliance between the two automakers.
