 |
| Francois Bailly, Nissan global vice president for Light Commercial Vehicles, Mike Whitfield, managing director, Nissan Group of Africa, Norio Maruyama, ambassador-designate for Japan in South Africa, David Makhura, premier of Gauteng, Ernest Mahlaule, chair of the board of the Gauteng Growth and Development Agency, Peyman Kargar, senior vice president and chair of the management committee for Africa, Middle East, and India (MC AMI) and South African President Cyril Ramaphosa. |
POLITICANS last week made much of multi-billion rand expansions to the plants of Nissan and Mercedes-Benz in South Africa, and for a change, they have a right to crow.
While making only about 0,6% of the world’s new cars annually, South Africa’s car industry has quietly grown to contribute as much as mining to SA’s GDP. This growth is made possible by the Automotive Production and Development Programme (APDP), which shows what can happen when government, unions and manufacturers agree on goals and rewards.
The APDP created policy certainty, which that capitalists demand before making the big investments
needed to put in place the systems and structures that bring together all the parts from hundreds of places to make thousands of vehicles a month.
needed to put in place the systems and structures that bring together all the parts from hundreds of places to make thousands of vehicles a month.
Big sums are involved.
In 2016 BMW spent R6-billion to expand its assembly lines to build the for X3, while Toyota invested over R6,1 billion to build the Hilux, Fortuner and Ses’fikile at Prospecton from where, incidentally, Backdraft’s bespoke factory also built and exports its Cobra replicas.
In 2018, Mercedes-Benz announced a R10-billion investment to expand its East London plant to build the C-Class while Chinese car builder BAIC recently completed the R2 billion second phase of its R11 billion plant at Coega in PE, where it produces vehicles Hyundai and Mercedes-branded cars for the Chinese market via its Beijing-Hyundai and Beijing-Benz joint venture agreements. Even SA’s tiny truck assembly plants spend relatively big sums. Volvo trucks announced a R6,5 million investment into its SKD manufacturing plant near Durban in 2017.
Nissan has now added to this automotive impetus with a R3 billion investment in its Rosslyn plant, north of Pretoria to build the new Navara bakkieal ongside the NP200 and NP300 bakkies, which are sold locally and exported to 45 states in Africa.
Navara rolls of in 2020
Production on the Navara is expected to start next year and Nissan said it will create around 1 200 new jobs at the facility as well as across the local supply chain. Depending on market conditions, it is anticipated Navara’s arrival will add 30,000 units to Rosslyn’s current annual production volume of 35,000, creating the need for a new, second shift at the plant.
In keeping with car builders’ importance to the economy, President Cyril Ramaphosa was on hand for the announcement, alongside chairman of Nissan’s Africa, Middle East and India region (AMI) Peyman Kargar and Mike Whitfield, managing director for the Nissan Group of Africa.
President Ramaphosa said the automotive sector accounted for a third of SA’s manufacturing output.
Kargar said Africa formed an essential part of Nissan’s midterm plan to 2022, in which the company aims to double its presence across the Africa, Middle East and India region.
Whitfield said government’s APDP provided crucial support for the investment to build the Navara. “The Navara’s production will allow us to expand Rosslyn’s role as an export hub for Light Commercial Vehicles and contribute further to the local automotive sector, fully in line with the goals in the next phase of the APDP.”
Navara has won multiple awards across the world since its launch, including the 2016 International Pickup of the Year.
