APDP not deterring investment

Investment continues in the motor industry despite lack of certainty about the final provisions in the new Automotive Production and Development Programme (APDP). When announcing new investments motor industry leaders usually make a point of saying that they are confident that the government will deliver on its commitments, and that their investment demonstrates good faith on the part of the auto industry. Some R14 billion has been committed to new models with a life cycle that will cross over from the Motor Industry Development Programme (APDP). They include Volkswagen, Toyota, BMW, Nissan and Renault vehicles, Daimler-Chrysler, General Motors and a highvolume export programme for the new generation Ford Ranger pickup and associated engine to 148 countries. All of these developments have created opportunities for the logistics and freight industries, as they move thousands of containers of parts and materials into the assembly plants and vehicles out of them to the four corners of the globe. Nimrod Zalk, deputy director-general of the Industry Development Division told the 2011 Car Conference that the APDP was designed to help the industry double annual vehicle production to 1.2 million units by the year 2020. He noted that the auto industry was the largest and leading industry in our manufacturing sector. It has high multipliers throughout the economy: drawing in metal (steel, aluminium & platinum), plastics, leather & textiles, and accounts for 12% of exports.