Continued spending in South Africa by multinational motor companies shows the global vehicle industry still sees SA as a safe investment destination‚ says the managing director of BMW SA‚ Tim Abbott.
The government must stick to the principles of the 2013-20 Automotive Production and Development Programme (APDP) to retain that confidence‚ he says.
In its latest quarterly report‚ the National Association of Automobile Manufacturers of SA predicts after spending a record R6.9-billion in 2014‚ SA vehicle manufacturers will invest another R7.5-billion this year.
BMW SA previously invested R2.2-billion to build the current 3-Series sedan at its Rosslyn assembly plant‚ near Pretoria.
Though production began three years ago‚ before the APDP‚ former managing director Bodo Donauer extracted government guarantees the company would receive the full incentive package – allowing the company to claim back about R500-million.
The next generation 3-Series is due in about four years’ time, so BMW Germany will soon start seeking future policy assurances from the South African government.
Abbott‚ who replaced Donauer late last year‚ hopes an APDP review‚ due this year‚ will not recommend significant changes. The former managing director of BMW UK takes an optimistic view of SA’s motor industry environment.
The government appears to have a clear understanding of what investors need‚ he says‚ and he believes relations with the main vehicle union‚ the National Union of Metalworkers of SA (Numsa)‚ are sound.
These are not universal views within the motor industry.
Donauer was an outspoken critic of SA’s strike-prone unions and two years ago he revealed the industry’s unreliable production record had persuaded BMW Germany to scrap plans to build an additional car range in SA. If approved‚ he said‚ the deal would have created hundreds of jobs.
Other companies have scaled back investment plans for the same reason. Industry executives are looking ahead with trepidation to next year’s three-yearly wage talks with Numsa.
Abbott says as an export-based industry‚ the vehicle sector cannot afford further strikes. If they do occur‚ they must be within the formal bargaining process so employers can plan and “work around the stoppage time-frame”.
South African unions are not known for giving advance notice of strikes.
Abbott expects production at BMW SA to increase this year.
The company recently launched its all-electric i3 car in SA‚ and the R1.75-million i8 hybrid sports car that works off a combination of petrol and electricity. — BDlive
Global boost for SA car industry
The government must stick to the principles of the 2013-20 Automotive Production and Development Programme (APDP) to retain that confidence‚ he says.
In its latest quarterly report‚ the National Association of Automobile Manufacturers of SA predicts after spending a record R6.9-billion in 2014‚ SA vehicle manufacturers will invest another R7.5-billion this year.
BMW SA previously invested R2.2-billion to build the current 3-Series sedan at its Rosslyn assembly plant‚ near Pretoria.
Though production began three years ago‚ before the APDP‚ former managing director Bodo Donauer extracted government guarantees the company would receive the full incentive package – allowing the company to claim back about R500-million.
The next generation 3-Series is due in about four years’ time, so BMW Germany will soon start seeking future policy assurances from the South African government.
Abbott‚ who replaced Donauer late last year‚ hopes an APDP review‚ due this year‚ will not recommend significant changes. The former managing director of BMW UK takes an optimistic view of SA’s motor industry environment.
The government appears to have a clear understanding of what investors need‚ he says‚ and he believes relations with the main vehicle union‚ the National Union of Metalworkers of SA (Numsa)‚ are sound.
These are not universal views within the motor industry.
Donauer was an outspoken critic of SA’s strike-prone unions and two years ago he revealed the industry’s unreliable production record had persuaded BMW Germany to scrap plans to build an additional car range in SA. If approved‚ he said‚ the deal would have created hundreds of jobs.
Other companies have scaled back investment plans for the same reason. Industry executives are looking ahead with trepidation to next year’s three-yearly wage talks with Numsa.
Abbott says as an export-based industry‚ the vehicle sector cannot afford further strikes. If they do occur‚ they must be within the formal bargaining process so employers can plan and “work around the stoppage time-frame”.
South African unions are not known for giving advance notice of strikes.
Abbott expects production at BMW SA to increase this year.
The company recently launched its all-electric i3 car in SA‚ and the R1.75-million i8 hybrid sports car that works off a combination of petrol and electricity. — BDlive
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