To support its race for the new C-class Mercedes-Benz contract, DaimlerChrysler South Africa required that the provincial government ensured stability in the province, said DCSA’s Stephan Massner.
Massner, who heads the motor manufacturer’s procurement and exporting division, spoke at an automotive seminar organised by the Eastern Cape Development Corporation here.
At the same time Finance MEC Enoch Godongwana has promised that the automotive industry was set to step up another gear with the expansion of the Automotive Industry Development Centre (AIDC) to Port Elizabeth as part of the ECDC’s growth strategy.
”In strengthening the automotive industry in the Eastern Cape, we will look at further enhancing the export successes of both fully build-up vehicles and components. The expansion of the AIDC to the Eastern Cape is part of the strategy towards greater global competitiveness.”
Massner said stability would create an environment conducive to investment. He said support for the multi-billion rand bid should be backed by a stable and reliable transport system for DCSA workers to accommodate flexible shift patterns and the continuous improvement of the infrastructure.
He also called on higher educational institutions to supply a skilled work-force. Massner said DCSA also faced challenges for this year, which included labour stability and the impact, which HIV-Aids would have on its work-force.
Massner said DCSA plans to form a strategic alliance with the other German automotive manufacturers to combine efforts and achieve synergies by working together on strategic and operational levels according to a defined organisational structure.
He said the idea was to establish, support and develop a South African world class supplier base. ”And to support the sustainable growth of the German automotive manufacturers through competitiveness and capability,” said Massner.
In his presentation Trade and Investment South Africa’s Gustav Meyer said South Africa’s competitive advantages, which are discussed with investors, include its first world infrastructure and production testing facilities.
The aumotive manufacturing sector also boasted a flexible production ability, vast raw material availability, low tooling costs and government’s support, he added.
The ECDC’s Zola Tshefu said the three automotive assemblies in the Eastern Cape produced almost 50% of South Africa’s production. The province has a long history of automotive production and its proximity to harbours and relatively cheaper input costs — labour, utilities, and property — strengthened the province’s investment potential.
Tshefu said the province also has an abundant and trainable labour pool. However its weaknesses included low production volume, low local content, a stagnating market and the distance to national and international markets.
There was also a shortage of skills, said Tshefu. She said the provincial policy for growth and development laid a foundation for profitable private sector investment and the ECDC’s main objective was to create a favourable environment for such
investments. Investments such as the taxi recapitalisation programme were among those being targeted by the ECDC, she added.
Tshefu said the provincial government was committed to support the automotive industry and was working towards anchoring the industry. – Sapa