Carmakers tune up for new deal
Handsome subsidies tied to local content in Davies's master plan
Carmakers are going to have to raise their game if they hope to meet stiff new local-content targets, says Andrew Kirby, president and CEO of Toyota SA and chair of the National Association of Automobile Manufacturers of SA. If they don't, the government support they've relied on for years will no longer be there for them. "Levels of support for vehicle manufacturers will reduce significantly," he says. "It's going to be a lot harder, and we're going to have to be really clever and innovative in order to achieve this growth in local content while remaining internationally competitive." The targets, revealed last week by trade & industry minister Rob Davies, are part of his latest master plan for the motor industry. This comprises an extended Automotive Production and Development Programme (APDP) that will take over from the existing APDP in 2021 and run to 2035. In terms of the existing APDP, which replaced the Motor Industry Development Programme in 2013, manufacturers earn duty re...
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