General Motors SA spent about R500 million to put the new Isuzu KB range into production, the Port Elizabeth-based manufacturer’s spokesman, Denise van Huyssteen, said on Tuesday.
General Motors SA spent about R500 million, most of which went towards tooling and facilities development at the company’s Kempston Road plant, to put the new Isuzu KB range into production, the Port Elizabeth-based manufacturer’s spokesman, Denise van Huyssteen, said on Tuesday.
The recently-launched fifth-generation KB marks the biggest single product line investment in the history of the company (previously known as Delta Motor).
GMSA first improved its production facilities and assembly capacity with a R200 million revamp. The new Isuzu KB range further required a R150 million spent on sheet metal tooling and over R160 million for local supplier tooling and engineering specifications.
Van Huyssteen added that GMSA hoped the new Isuzu KB would help the manufacturer aggressively grow its market share in the Light Commercial Vehicle segment.
“The growth prospects are expected to bring opportunities throughout the automotive supply chain. In addition to the R500 million investment, the company plans to spend R500 million per annum on procuring parts with local direct material suppliers,” she added.
Nearly 100 South African suppliers, of which a significant number are based in the Eastern Cape, will provide a solid supplier base for the Isuzu product line, Van Huyssteen said.
Original article from Car