2150 words 9 pages
LECTURER: Boaz K. Ingari
General Motors (K) ltd

An Introduction
General Motors East Africa Limited was formed in 1975 and is a joint venture between General Motors Corporation (57.8%), Industrial and Commercial Development Corporation (20%), Centum Investments (17.8%) and Itochu Corporation (4.4%).

The vehicle manufacturing plant in Nairobi assembles a wide range of Isuzu trucks and buses. It is the largest manufacturer of commercial vehicles in the Eastern Africa region with more than fifteen models. GM East Africa also retails fully built Chevrolet brands.

General Motors East Africa Limited is certified to ISO 9001:2008 (quality management system) and ISO 14001:2004 (environment
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Dieterich. And the passenger car market (i.e. the new Uhuru model) may both increase profits (and therefore dividends to shareholders) and save the government foreign exchange now spend on imports of passenger cars.

Another objective of GM (K) that focuses on the national shortage of foreign exchange involves the exporting of assembly tools made by GM in its local plants. For example, in April 1985, it reported sending one of its engineers to Egypt to install and commission vehicle assembly equipment made in Kenya and exported to Egypt. The tools exported to Egypt were reportedly designed in Kenya and were designed as labor intensive. Other exports of assembly tools have been made to Nigeria, Zambia, Tunisia and Latin America. And Egypt has placed a 3 million Kenya shilling order for future delivery. Many local engineers feel that Kenya’s ability to manufacture for export is only in the infancy stage and has considerable future regional market potential.

Another area of export interest to GM (K) directly involves the assembly of vehicles, and perhaps the new passenger car model. The first hurdle was cleared when the company announced that the Kenyan government and former president Moi had given endorsement to go ahead with the production Kenya’s first locally assembled passenger car, the Uhuru at a March 1985 public unveiling ceremony. The Uhuru model was powered by an 1800 cc engine and had a


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