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.