The Department of Trade and Industry is currently in talks with General Motors South Africa (GMSA) to find a new investor for part of its South African operations, deputy president Cyril Ramaphosa said.

This follows GM’s May announcement to exit the South African by the end of 2017.

Japanese company Isuzu have already agreed to take over part of GMSA’s assets.

Ramaphosa said the manner and timing of GM’s decision to withdraw from the South African market did not allow for any meaningful intervention prior to the decision.

“Nevertheless, an urgent process has been put in place by the Department of Trade and Industry to engage both General Motors and Isuzu with a view to ensure everything possible is done to support the production of Isuzu vehicles in South Africa,” he said.

“They will also explore the possibility that a new investor can take over the part of the General Motors facility not sold to Isuzu to produce other vehicles, possibly in another market segment or as a contract manager,” he added.

Ramaphosa said government had in the past made “sustained efforts” to assist GMSA, however the company informed government that as of recent, it was not performing well in the domestic market, in both production and sales.

Ramaphosa said the lesson here was that the global automotive industry is a highly dynamic and competitive market in which companies make decisions based on their global strategies.

“We are told that the decision by General Motors is informed by its global strategy, which includes exiting other markets such as Australia and India,” he said.

Ramaphosa also explained that in an increasingly competitive global market, countries compete for investment and production in the context of decisions made by global manufacturers.

He said that against this background, government is currently engaged in an automotive policy review and strategy process, working closely with a wide range of companies and industry associations.

“This process will develop a ‘Post 2020 Automotive Masterplan’, which will be served before Cabinet later in the year,” he said.