THE LOCAL MOTOR INDUSTRY
is in the throes of recovering from a seven-week strike –
the longest in history – and has been a major topic in the news as its manufacturing future is
debated, so the encouraging words from Minister Davies are sure to be welcomed by vehicle
and component manufacturers alike.
The most important initiative is a programme to raise competitiveness and encourage
excellence in production in the component manufacturing industry. An amount of R23-million
has been spent on this project already this year, while R63-million has been budgeted to
improve competiveness in the automotive supply chain in a three-year programme. The
Department of Trade and Industry (DTI) will contribute 50% of the latter amount and other
stakeholders the balance.
Theminister said that the promised early reviewof theAutomotive Production andDevelopment
Programme(APDP),whichwasinstitutedatthebeginningoftheyear,willbecompletedbeforethe
endof thenext financial yearwith the terms of referencebeingannouncedby the endof February.
Minister Davies added that early indications are that the APDP is proving a success and has
already resulted in significant investments in new projects; investments totalling R15-billion
have been made since 2009, linked to the implementation of the APDP in 2013.
Although Dr Davies did not announce any specific plans to encourage labour stability in the
motor industry he said all the stakeholders, including government, were being encouraged to
create the very necessary stability.
He said that he was encouraged by a constructive meeting that had been held with members
of the National Association of Automobile Manufacturers of SA (NAAMSA) and the National
Union of Metalworkers of SA (NUMSA) and a joint statement will be issued shortly. (The
secretary-general of NUMSA, Irvin Jim, was present at the official opening of JIMS but did not
address the gathering).
During his address, the minister stressed the importance of the automotive sector in the
context of the overall South African manufacturing environment and said the DTI and other
government departments were always looking at ways to increase industrialisation.
One of these initiatives involves the Department of the Environment and Water Affairs, which
is embarking on a programme to build charging stations for electric vehicles, to encourage
increased use of this eco-friendly power source.
Initiatives
Several initiatives are to be
implemented or developed to
assist the South African motor
industry to become more
competitive globally. This was
announced by the Minister
of Trade and Industry, Dr Rob
Davies, speaking at the official
opening of the Johannesburg
International Motor Show.
to boost competiveness
