Why did GM leave South Africa ten years ago

Why did GM leave South Africa ten years ago - Why did GM...

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Why did GM leave South Africa ten years ago? What was the dilemma facing foreign firms at that time? GM pulled out of South Africa because of the country’s policies of racial segregation and pressure fromshareholders. “The industry was too small, too fragmented and overtraded to provide a viable future for the 7 major vehicle manufacturers at the time,” says Nico Vermeulen, executive director of NAAMSA. Mlota elaborates: “The key original objectives were to improve international competitiveness and domestic vehicle affordability, encourage domestic growth, reduce complexity in supply through rationalization, convince manufacturers to focus on longer production runs and modernization, create sustainable employment, create a better balance in foreign exchange, and particularly to achieve growth in exports.” In tackling such a multifaceted agenda, the MIDP has continued the methodical process of bringing down custom barriers which began in the late 1980s with the reduction of import tariffs as high as 115%, and created for the first time, based on the previous Australian model, powerful new measures such as Import-Export Complementation and Productive Asset Allowances
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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Why did GM leave South Africa ten years ago - Why did GM...

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