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Uncertain future for GMSA

2009-01-30 08:32

Jobs at General Motors SA will depend on the future of the company's Hummer brand, the car manufacturer said.

“As widely reported over the past six months with respect to General  Motors's restructuring plans in North America, the Hummer brand will not be occupying a role in GM's future brand portfolio," GMSA said in a  statement.

The smaller H3 version of the Hummer was presently manufactured in Port Elizabeth and then exported. Should Hummer no longer be part of GMSA's manufacturing line, this would impact on jobs, particularly those directly linked to the Hummer, the company added.

This could be worsened by a further deterioration in the vehicle sales market, which could possibly lead to operations being shut down and job losses.

GMSA said it was still speculative to estimate how many jobs could potentially be affected. 

"An important part of this process would incorporate consultation with the union and all potentially affected employees," it said.

The car manufacturer retrenched 1000 people last year.

GMSA said it had been operating for more than 80 years in South Africa and would continue to introduce new products to market.

"We also continue to have responsibility for our own future in our own market as all GM's international operations need to be responsible for their own performance and growth."
The Hummer's future would be known when an update on the vehicle was released by the end of the first quarter of this year.


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