Japan’s Isuzu Motors has acquired a majority 57.7% stake in General Motors East Africa from the parent company General Motors Co. (NYSE:GM. Isuzu has said that is making this investment with the intention of expanding its commercial vehicle production and sales in Eastern Africa.
Since its establishment in 1975, General Motors EA has been engaged in assembly and sales of Isuzu-badged light and mid-duty trucks and buses, and import and sales of Isuzu pickup trucks and Chevrolet passenger cars. GMEA has maintained the top share in Kenya’s commercial vehicle market for five years since 2012.
“Isuzu will acquire 57.7% of the GM-owned GMEA stocks to become a subsidiary of Isuzu Motors. As the result, GMEA’s company name will be renewed in April, 2017. The new name will be ‘ISUZU EAST AFRICA’.” noted GM in an email sent to the Kenyan Wallstreet.
Isuzu will make this investment aiming at further quality improvement, vehicle sales expansion and after sales service enhancement. For these purposes, Isuzu will provide the company in East Africa with as much assistance as possible in the fields of personnel training, manufacturing technique and enhancement of After sales business.
Outline of the new company
|Company name||ISUZU EAST AFRICA LIMITED|
|Representative||Rita Kavashe (Managing Director)|
|Major shareholders||Isuzu: 57.7%, ICDC: 20%, Centum Investments: 17.8%, Itochu Corporation: 4.5%|
|Sphere of business||CKD kits-based assembly and sales of Isuzu trucks and buses, import and sales of Isuzu pickup trucks, parts supply and after-sales servicing|
|Capital||KES 31 million (approx. JPY 30 million)|