HALISTER: GM to Cease India Sales, Offload South African Assets to Isuzu

GM to Cease India Sales, Offload South African Assets to Isuzu

(Bloomberg) -- General Motors will cease sales in India and sell its South African plant, joint-venture shareholding and parts and distribution center to Isuzu Motors, according to co. statement.
  • GM expects to realize annual savings of ~$100m from restructuring actions
  • Co. plans to take ~$500m charge in 2Q, ~$200m of special charge will be cash expenses
  • GM’s Talegaon plant will become an export-only facility, with Chevrolet vehicle sales in India ending by end-2017
  • Isuzu will purchase GM’s Struandale plant, GM’s remaining 30% stake in Isuzu Truck South Africa JV
  • GM to phase out Chevrolet brand in South Africa by end-2017, work with PSA Group to evaluate future opportunity for the Opel brand in the market
  • NOTE: GM reached deal to sell Opel to PSA in February: Link
To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.net

Alert: HALISTER
Source: BFW (Bloomberg First Word)

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