GM cuts 600 jobs in South Africa, leaving for good

GM

GM South Africa said it will be cutting 600 jobs out of its total 1,500 staffers at its plant in the country.

The company has finalized a deal that will see the company selling off its asset to exit South Africa.

As quoted by Reuters news Agency, the National Union of Metalworkers of South Africa (NUMSA) confirmed that GM had confirmed the numbers and issued lay-off notices as required by law.

A statement released by GM on its website, the company said its rationale to leave South Africa was a business decision, based on GM’s global business priorities. There have been significant changes to the global industry over the last few years, and our global strategy has evolved with these changes. The company added that:

The most significant industry change has been the emergence of mobility (autonomous/ride sharing/electrification/connectivity) as a service and as a long-term growth opportunity.

Globally, GM firmly believes there are opportunities where it can achieve greater return on investment – in specific vehicle segments and markets where the outlook for growth is very strong (business adjacencies, SUVs and crossovers, U.S. and China).

It would be recalled that GM had announced the sale of 57.7% of its East African operation, the latest announcement that it will be selling its South African business is an enough move to show the company is deleveraging and quitting markets where operations are loss-making.

GM South Africa was a producer of Chevrolet, Isuzu and Opel brands in the country.