SABC News - Car manufacturers have lost confidence in SA economy:Friday 19 May 2017

'Car manufacturers have lost confidence in SA economy'

Friday 19 May 2017 10:00

SABC

GM has confirmed its intention to phase out operations in South Africa by the end of this year.(SABC)

Some analysts say General Motors' (GM) announcement that it will stop operating in South Africa is a clear indication that the car manufacturer has lost confidence in the country's economic outlook.

GM on Thursday confirmed its intention to phase out operations in South Africa by the end of this year.

It says Isuzu will buy its light commercial vehicle manufacturing operations while the manufacturing of Opel brands and Chevrolet will be phased out before the end of the year.

Speaking on AM Live, Economist Maudi Lentsoane says General Motors might have seen better opportunities elsewhere.

"No confidence in South Africa and I mean that's just how it works in a global environment where we operate. It's that if things get worse in one country, you know, it's easier for those companies to divert their investments elsewhere and very negative, very negative for the country of course.”

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