New export council will focus on generic projects
MOTOR MANUFACTURERS and component suppliers face a number of challenges
in breaking into the export markets, says National Association of Automobile Manufacturers of South Africa (Naamsa) executive director Nico Vermeulen.
Speaking at the inaugural meeting of the Automotive Industry Export Council (AIEC) recently, Vermeulen said Naamsa's Export Division had identified a number of problems and challenges facing South African exporters. These included:
- High logistical cost factors, including high transport costs and high wharfage charges;
- The uncompetitive price of South African processed raw materials, particularly, the price of steel;
- The need for improved security, particularly through harbour channels, where problems of vehicle vandalisation and theft of items from vehicles destined for exports are increasing;
- Unfounded perceptions in certain African countries that South African products are inferior compared to First World products;
- The importance of increased harmonisation of automotive vehicle standards to facilitate the global exports of South African produced vehicles;
- The lack of sales data in many African states, compounded by the lack of relevant market intelligence information;
- The need for support for certain high technology industries with export potential, as well as the importance of industry programmes and assistance to promote the development of aluminium and metal processing facilities, the impending natural fibres project and similar initiatives;
- Access to competitive export product financing.
The best way to meet the challenges of trade liberalisation, globalisation of markets and rapid technological change was for the automotive industry to co-operate and mount a collective effort to facilitate and safeguard the industry's export activities, he said.
Naamsa believed there should be a particular focus on non-competitive generic issues and projects.
It was agreed that the AIEC should focus on the entire supply chain logistics and explore the benefits of the possible pooling of such logistical resources as warehousing facilities offshore.
The pro tem composition of the Council's Executive Committee includes the executive directors and representatives of the National Association of Automotive Component Manufacturers and the National Association of Automobile Manufacturers of South Africa, plus representatives of the Eastern Cape and Pretoria Metro Cluster Initiatives and the DTI's Gustav Meyer.
Naamsa has offered to provide administrative and secretarial support.
By Ed Richardson
Copyright Now Media (Pty) Ltd
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