BMW is the latest motor assembler in South Africa to say it is cautiously optimistic that the country will continue to manufacture motor vehicles – which means that there will continue to be work for companies supplying inbound logistics for assembly and outbound logistics for fully built up units and components. In a statement released at the start of production of the BMW X3 in Rosslyn, Tim Abbott, CEO of BMW Group South Africa and Sub-Saharan Africa, said the company’s R6-billion investment had been made in terms of the Automotive Production and Development Plan (APDP), which expires in 2020.
“Discussions about a replacement plan have been fruitful and are ongoing, and are crucial for the long-term outlook as well as the stability of the automotive sector and BMW Group South Africa’s commitment to the country,” the statement adds. It echoes remarks made by Volkswagen South Africa chairman and managing director Thomas Schaefer at the launch of the new Polo in January. He said “in essence, one of the most important issues for us as vehicle manufacturers is a stable and attractive government automotive policy.
“This is where the South African government needs to be complimented, firstly for the introduction of the MIDP, which worked and provided a stable base for the successor programme, called the APDP, which again can be called a success. “I am sure that the next phase will continue in the same vein and allow for continued automotive investment.”
Ford Middle East and Africa president Jacques Brent is quoted by IOL as expressing similar sentiments at the announcement that Ford is doubling the output of its engine plant in Struandale, Port Elizabeth. “I definitely get the idea that it’s not going to be business as usual. Not everybody is going to be happy, but I hope it is going to be as much a win-win as possible,” he said. Motor manufacturers and suppliers are under pressure from government to transform the industry by supporting black-owned manufacturers, and to increase local content.
There are a number of industry initiatives under way to identify and develop blackowned manufacturers, with the main opportunities being in the supply chain rather than at OEM (original equipment manufacturer) level. The BMW Rosslyn plant will be able to build 76 000 vehicles a year, for both the local and export markets.
Caption: BMW's Rosslyn manufacturing plant.
