MOTOR INDUSTRY
Why plan for South African-built trucks ‘may not happen’
Industry executives say trucks do not boast the economies of scale of car manufacturers
Government plans for a revised local truck manufacturing strategy may never be carried out because of feasibility problems, UD Trucks MD Gert Swanepoel said on Tuesday. While heavy vehicles are assembled predominantly from imported kits, the Department of Trade and Industry is anxious to increase use of South African-built components. At present, local value, including parts, labour and energy, is little more than 10% of the vehicles’ total production cost. This compares unfavourably with the average 38% local content in South African-made cars and bakkies, which Trade and Industry Minister Rob Davies believed was inadequate. He wanted to raise that to at least 60% by amending the Automotive Production and Development Programme and its successor (from 2021 to 2035). He wants trucks to be included in the next stage of policy. Truck industry executives, however, have argued that the plan is not viable. Their industry does not boast the economies of scale enjoyed by car and bakkie make...
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