World's largest automaker and producer of have hired Africa Motors Machinery which is a division of Mantrac Uganda Limited, to sell and service its products in Uganda.
It was General Motors East Africa Managing Director Bill Lay that made the announcement while presiding at the opening of the Africa Motors Machinery showroom in Kampala. Other personalities were present at the function namely the US ambassador to Uganda Steven Browning, Ambassador of Egypt Redar Abdel, and the Ambassador of Kenya Japheth Ratemo.
GMEA Director Lay said that the automaker has recognized East Africa as well as its East African Community to be one of the vital emerging markets in the world. He also added that the automaker would like to offer the appropriate support to help in developing the tremendous potential of East African market by means of maximizing efficiencies to bring in more car brands.
GMEA Director Lay said, "We are targeting Uganda because of its strategic business potential and the warm investment climate in the region."
Dr. Maggi Kigozi, the Executive Director Uganda Investment Authority said that the development would mark a new era in an effort to restrain the importation of second hand vehicles in the country.
She also added that the GMT investment would bring in a new link to all sectors of the economy that includes insurance companies, construction, and business for banks. "There is a lot of investment coming in and I want to assure all country representatives here that there is market for everything in Uganda."
Africa Motors Machinery Managing Director Vicent Balogun said that GMEA has already invested around $140 million in spare parts plus a garage that would handle the routine maintenance for all categories of Isuzu vehicles in Uganda. He also said that all Isuzu motors spares have previously been imported from Kenya but now everything is here further stating that the said development will created jobs for 200 Ugandans.
Aside from Uganda, General Motors has also announced that it will invest an additional $500 million for its Argentina and Brazil plants to develop a new breed of small vehicles for the emerging markets.
The added investment will upgrade the production plants of General Motors in Rosario, Argentina, and Sao Caetano do Sul, Brazil as well as expand and re-equipped GM's Brazilian product-development center that is according to GM Chairman and Chief Executive Rick Wagoner.
Chairman Wagoner said, "With the improved economic environment in Argentina and Brazil, we are proceeding with our next phase of investments to support our continued growth in Latin America and around the world. GM has a rich history in the Mercosul region, and we look forward to continuing our growth for many years to come."
The Mercosul for those who do not know is a free-trade region that involves Argentina, Brazil, Paraguay, and Uruguay.
General Motors' sales are up by 18 percent in Brail and record a 16 percent sales growth in Argentina for the first six months of this year that is basing on the reports of the Detroit Free Press.
