THE SOUTH African motor trade and component industries predict that the motor industry will contribute between 12% and 15% of South Africa's total import and export flows during 2000.
According to a recent P&O Nedlloyd report, the industry's container volumes will reach 160 000 teus (twenty foot equivalent units) from a total of about 90 000 teus three years ago.
The government's Motor Industry Development Programme (MIDP) encourages motor manufacturers to rationalise the number of models produced, says P&ON's motor vehicle product manager, Chris Swanepoel.
The MIDP allows motor manufacturers to claim rebates on imported vehicles in relation to their exports of both vehicles and components.
Motor manufacturers will develop high production assembly lines to achieve economies of scale, while allowing other models to be imported as FBU (Fully Built Up) cars with reduced import duties, thus promoting higher productivity and global competitiveness.
The trend has already started in the Eastern Cape, where Volkswagen (VW) is producing all right-hand-drive Golfs for the UK market. This has resulted in an import flow of
components, parts and Component Knock Downs (CKD) of 10 000 teus while export flows have increased by 20 000 teus as the fully built up cars are moved back to the UK in 40 ft containers.
Daimler Chrysler, Ford and BMW have similar projects in the pipeline, which should see volumes increasing by 25% to
195 000 teus by 2003, says Swanepoel.
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
