General Motors’ much-publicised takeover of Daewoo Motors last year has finally had an impact on South Africa, with Delta (in which the US automotive giant holds a 49 per cent stake) being appointed the SA distributor for Daewoo products.
General Motors’ much-publicised takeover of Daewoo Motors last year has finally had an impact on South Africa, with Delta (in which the US automotive giant holds a 49 per cent stake) being appointed the SA distributor for Daewoo products.
CARtoday.com reported in January on rumours that Delta Motor Corporation would take charge of the distribution and marketing of Daewoo in South Africa. Recently, Delta’s corporate communications manager Denise van Huyssteen confirmed that the Port Elizabeth-based manufacturer had been appointed the South African distributor for models originating from the GM Daewoo Auto & Technology (GMDAT) stable.
GMDAT, the research, development and production house for Daewoo products, was established in October following the acquisition by GM of the assets of Daewoo Motor Company of Korea.
Van Huyssteen told that Delta was assessing its strategy for the future distribution of these products.
“As part of our bridging strategy, we have appointed selected Daewoo dealers to assist with the servicing of the Daewoo car parts in South Africa,” she said, adding that “a major announcement related to Daewoo products” was expected to be made by Delta next month.
Daewoo Motor SA’s general manager of sales and marketing Adri Roe said in January this year that the company had stopped importing new vehicle stock since the formation of GMDAT “to pave the way for the new company’s marketing strategy”.
Roe said at the time that Daewoo Motor SA anticipated a shortage of new vehicle stock in the interim period while GMDAT finalised an agreement with a new, then unnamed, local entity.
But Daewoo Motor SA, which was based in Midrand, has also apparently ceased operating from these premises. Roe added in January this year that it had signed an agreement with Nexus Business Solutions, the global warranty administrators of all the vehicles of Daewoo Motor Company of Korea, making it the warranty administrator for all Daewoo vehicles in SA.
The confirmation by Delta that it has been appointed the distributor of Daewoo in South Africa suggests it has taken over the role of warranty administrator in South Africa with warranties administered through the existing Daewoo dealer network.
Subsequent to GMDAT becoming a legal entity last October, Daewoo Motor SA had also signed a parts purchase and distribution contract with the new company.
