SA automotive industry ‘needs wholesale changes’
Ford SA says the Automotive Production and Development Programme must be part of a broad economic restructuring to be effective
The SA motor industry can’t become globally competitive on its own but needs wholesale changes across the industrial and infrastructural landscape, Ford SA president Neale Hill said on Tuesday. A revised automotive development strategy, coming into force in January 2021, will require motor companies to increase the value of local content in SA-made vehicles to at least 60%. The current average sits below 40%. Companies will also have to drastically grow the number of black-owned companies supplying components and sub-components. The new version of the Automotive Production and Development Programme (APDP) will run to 2035. By then, if all goes according to plan, motor industry employment and annual vehicle production will both double, to 240,000 people and 1.2-million units, respectively. However, Hill said that to succeed, the APDP must be part of a broad economic restructuring. Higher production volumes have to be economically viable. Increases in local content can be no more than...
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