GM South Africa Won't Be Affected By Parent's Bankruptcy Filing
02 Juni 2009 - 9:37AM
Dow Jones News
The South African arm of General Motors Corp. (GM) said it won't
be affected by its parent's bankruptcy filing Monday.
GM South Africa isn't part of the filing in the U.S. and
creditors of the parent would have no claim on the South African
unit as it hasn't guaranteed any U.S. obligations or had any of its
assets used as security for GM's obligations, the company said in
an emailed statement.
"We continue to generate our own cash and are responsible for
our own viability. We are a self-sustaining operation and as such
will continue to operate as normal," said Steve Koch, president and
managing director of GM African Operations
GM has operated in South Africa since 1926, selling Chevrolet,
Isuzu, Opel, Hummer, Saab and Cadillac brands.
Koch said the unit's plans to invest in future products that
will be assembled at production facilities in Port Elizabeth remain
on track, and it will soon break ground on a new 250 million rand
($31 million) pan-African parts distribution center.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com