The company doubled production when it established the Struandale plant in Port Elizabeth and created a large vehicle component export base.
Delta has also left GM with a solid 10,7% of the South African vehicle market.
The company had no name, no money and, although of good parentage, it depended entirely on its own capabilities when Delta was established in January 1987, said former MD Willie van Wyk at a dinner in celebration of the deal in Sandton this week .
“Apparently it made for good light-hearted chatter over business luncheons,” said Van Wyk.
“But it wasn’t seen to be amusing in all quarters some banks, for example, lost their total sense of humour when the subject of future funding came up,” said Van Wyk.
The new company continued to represent GM’s brands in SA, such as Opel and Isuzu. It planned to do battle with the industry’s goliaths such as BMW, Mercedes, Toyota and Nissan, which had foreign backing.
Delta gradually silenced its sceptics in its first year of operation the new company increased its vehicle throughput and sold 6000 more vehicles than it had expected, achieving a profit within its first year of operation.
Delta had not posted a loss in any of its 17 years of existence. This might be a record for a South African vehicle manufacturer, said Van Wyk. In 1990, Delta won the Top Non-Listed Company award and a year later its first of three Car of the Year awards.
The company funded all of its capital projects, worth R2bn over these years, and generated about R10bn for SA in
vehicle exports. The company exports built-up vehicles to Africa, while components, such as catalytic converters, are exported to several foreign markets.
Before GM’s takeover, the company was controlled by its directors, who owned 51% of the shares in the company.
GM owned the balance. Van Wyk has relinquished his ties with the company.
Delta gained many friends along the way, including Trade and Industry Minister Alec Erwin, who played a big role in GM’s return to SA.
Ironically, the minister, a former labour unionist, had once lobbied to push GM out of the country, in an effort to drive home a political message.
“I remember campaigning successfully to get GM out. I’m pleased they’re back,” said Erwin at the dinner.
