Marking its fifth consecutive year of growth, General Motors African Operations increased 2008 vehicle volume 18 percent over 2007 crossing the 200,000 unit milestone for the first time to reach a record 212,362 unit sales.
General Motors in North and West Africa and GM Egypt set the pace for the rest of the region with 57 percent and 52 percent growth respectively. Between the two markets, the Chevrolet brand increased an average of 55 percent.
“We are pleased with another record year of sales, especially considering the tough economic conditions the world faced last year,” GM African Operations president Stevan Koch said. “With our performance in 2008, our business has more than tripled in the last five years.”
Throughout GM’s African Operations Chevrolet increased a hefty 40 percent on the strength of its full line of passenger vehicles, pick-up trucks and light commercial vehicles. Chevrolet small and mid-size cars grew 47 percent in 2008 led by the Chevrolet Optra (69 percent growth), the Chevrolet Spark (45 percent growth) and the Chevrolet Aveo (32 percent growth).
Koch said it is important to also note that GM’s market share grew in 2008 as well. “Growing volume is always important, but market share is a good indicator of a brand’s strength. In tough times, the stronger, more trusted brands will gain. So it is gratifying to see the dramatic growth in market share realized this past year.”
While it is difficult to get an accurate read on many of the African markets, based on an estimated 1.4 million unit industry overall, GM gained an impressive 2.9 points of market share in 2008. Gaining share in each of its markets last year boosted GM’s African Operations market share to a total of 15.1 percent.
“To grow in this industry really takes a tremendous team effort,” Koch continued. “It’s all about great product delivered through strong distribution, backed by brands that you can trust.” Nearly 200 dealers strong in the region with approximately 300 points of sale in 35 countries, GM dealers are continuously investing in facility upgrades, new showrooms and expanded Aftersales services and support to ensure the best vehicle ownership experience for every customer.
Similarly, GM continues to invest in its operations throughout Africa to ensure a positive experience for customers. Last year GM committed approximately $56 million (USD) of investments for its African Operations including a $19 million (USD) South African Vehicle Conversion and Distribution Center which streamlines all processes related to storage, conversion, pre-delivery activities, upfitment and distribution of local and imported units, as well as improving delivery time to dealers. The company also spent the last $4 million of a $28 million (USD) total investment installing a new paint shop for operations in Egypt and announced a $22 million (USD) investment to build a Pan African Parts Distribution Center in South Africa which will improve parts availability to customers by providing replacement parts and accessories to dealers throughout the continent.
While acknowledging many emerging markets will experience some slowing of recent economic growth, Koch remains optimistic about the opportunities for GM African Operations. “We are committed to our business throughout Africa and are taking the necessary steps to position ourselves for continued strong performance in 2009 and beyond.”
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