Nissan South Africa announced on Monday that it has received a R1-billion contract to export locally built single cab pick-ups to Europe, Singapore, Australia and New Zealand from next year.
The contract would see the company exporting about 4 600 left and right-hand drive one-ton Hardbody single cabs annually, Nissan South Africa managing director Julio Panama said.
Australia and New Zealand would initially receive 1 800 vehicles a year from next October, with another 2 800 destined annually for Europe and Singapore.
Panama added that the contract was for an initial two years and could be extended for another three years depending on performance.
“We are very proud to be awarded this important contract,” said Panama.
“It is important for us, for our suppliers and for South Africa. It places us among the global players in the very competitive world automotive market and is evidence of our parent company’s confidence in our ability to deliver quality vehicles on time and at a competitive cost to world markets.
“In addition to being the leading exporter of passenger cars and light commercial vehicles to sub-Saharan Africa (where we enjoy a total market share of 45%), we are also a leading exporter of parts and accessories.
“Last year we exported in excess of 500 000 South African-made alloy wheels — mainly to North America and also to Japan, Mexico and the UK.”
The export will aid in the profitable growth in both South Africa and the destination markets for Nissan through more efficient utilisation of its global manufacturing base.
Nissan is in the midst of a three-year plan under which the company will grow sales volume by an additional one-million units, while at the same time maintaining the highest operating profit margin in the industry and eliminating automotive debt.
Last year the company announced the elimination of debt and reported the highest operating margin of any volume automaker, and this year, the company has forecast a global sales volume increase of 9,7% with an improvement in its margin.
“We can expect to increase our manufacturing volume of pickups by some 20%, thereby better utilising our Rosslyn plant and reducing the cost per unit,” he added.
“It will benefit the economy by earning additional foreign exchange and will result in job creation and additional business for our suppliers. A total of 600 parts affects some 50 suppliers.- I-Net Bridge