State snub may see car maker exodus
Volkswagen SA warns of the end of the industry if government stops Automotive Production and Development Programme
Any lessening of government support for the motor industry could have drastic consequences by causing multinational companies to question the need to remain in SA, Volkswagen SA (VWSA) MD Thomas Schäfer has warned. Despite the success of the 2013-2020 Automotive Production and Development Programme (APDP) in attracting billions of rand in foreign investment, discussions with the government had revealed some senior officials were arguing that resources set aside for APDP incentives could be better used for other economic priorities, he said at a briefing on Tuesday. Vehicle and components manufacturers can claim back up to 30% of production-related investments, among other benefits. It is estimated the programme has so far attracted nearly R50bn in investments either spent or committed. "SA accounts for only 0.6% of global vehicle production and we are not really cost-competitive," Schäfer said. "But a lot of the disadvantages are overcome by the APDP. If it went away, it would be th...
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