STATE DRIVE
Local content of 60% for SA cars ‘unfair’
Executive warns multinationals will leave SA if local ownership codes are enforced
The state’s plans for 60% local content in SA-built cars and light commercial vehicles were unworkable and unfair, critics said on Wednesday. Trade and Industry Minister Rob Davies told a motor industry conference in Durban on Wednesday that the current 38% average was inadequate and that his department would push for 60% in the next phase of motor industry support policy, after the current Automotive Production and Development Programme (APDP) ends in 2020. Interviewed afterwards, he reiterated that 60% should be the average, not a minimum for all local manufacturers. Volkswagen SA MD Thomas Schaefer, however, said the idea penalised high achievers. His company already boasts local content – defined as SA value addition in the assembly process including locally made components, labour and manufacturing costs – of more than 70%. Some others struggle to reach 30%. He said all companies should be set the same goal. "Why should we increase our contribution to, say, 80% so someone else ...
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