Isuzu Motors buys out 57.7pc stake in GMEA

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By Julie Owino

KBC Radio_KICD Timetable

Japanese automaker Isuzu Motors Limited has bought out General Motors’ 57.7 per cent stake in General Motors East Africa for an undisclosed sum.

The transaction will see the motor dealer change its name to Isuzu East Africa in April to reflect the change of control.

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Detroit-based GM will also take away its Chevrolet franchise from General Motors East Africa as part of the termination of the alliance between the two automakers.

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In a statement Isuzu said it is making this investment with the intention of expanding its commercial vehicle production and sales in Eastern Africa.

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Isuzu’s partners in GMEA are Centum Investments with a 17.8 per cent stake, ICDC 20 per cent, and Itochu Corporation 4.5 per cent.

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The deal comes at a time when the dealer has steadily grown its market share in the local new vehicle market to a record 35 per cent last year, with Isuzu brands representing more than 95.6 per cent of the sales.

 

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