General Motors and Delta have entered negotiations to increase the American manufacturer’s stake in the local company.
Delta Motor Corporation, in which General Motors has a 49 per cent stake, announced on Friday that it was negotiating to increase the American manufacturer’s interest in the company.
Delta manager of corporate communications Denise van Huyssteen said GM had expressed interest in increasing its shares in the local maufacturer. She said negotiations were expected to take several months.
GM bought a 47 per cent stake in the company in December 1997, with the option to buy additional equity in the future.
The move is important for the local company due to the government’s revised terms of the motor industry programme. It has become necessary for local manufacturers to allow its foreign parent company to have a larger stake. This allows Delta to gain access to more export markets.
Nissan, Ford and Toyota have already struck similar deals with their parent companies.