Artwell Dlamini
13 July 2009
Johannesburg — GENERAL Motors (GM), which has newly emerged out of bankruptcy, is gearing to play a hands-on role in the operations of its units outside the US, including General Motors SA (GMSA).
Maureen Kempston Darkes, vice-president for Latin American, Africa and Middle East, said on Friday the new GM would have greater control over operations and products, and co-operate closely with its subsidiaries.
Darkes, whose three-day visit in SA ended on Friday, said this would facilitate speedier decision-making and better execution of decisions. The new approach aimed to improve accountability, while inculcating new values such as a greater focus on products and customers.
The company intended taking off some layers, she said.
Darkes was in SA to meet GMSA workers and dealers to reassure them about the viability of the new GM, which was officially unveiled on Friday. The visit marked the first high-profile attempt by the US company since it filed for bankruptcy early last month to reach out to its stakeholders in SA.
The new GM began operating on Friday under a new corporate structure, which marked an end to the bankruptcy process.
The new company would keep the historic corporate brand and sub-brands, but would focus on four core brands -- Chevrolet, Cadillac, Buick and GMC.
Darkes confirmed that GMSA was part of the new GM, saying the parent was committed to the South African business and would continue to provide support in matters such as plant technologies and introduction of new vehicles.
GM would continue to honour its commitments to domestic dealers.
Darkes, a member of GM's strategy vehicle board, said GM was mid-way through its restructuring. The company had experienced a challenging year with "lots of bumps and turns".
She described the turmoil as the most difficult time in her 34-year career. But GM was now leaner and more efficient, with a healthy balance sheet.
"We have fixed the balance sheet and the cost structure is right," said Darkes.
GM African Operations president Stevan Koch said the local unit was debt free, generated cash and had neither borrowed nor sought a bailout from the government.
He expected the domestic vehicle market to bottom out in April.
Darkes said stimulus packages had boosted car sales in some countries, and singled out Brazil.
Asked whether the South African government should have provided a rescue package, Darkes said it had to make its own decision for the country's particular needs.
Be the first to Write a Comment!
Copyright © 2009 Business Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
