Industrialise or die, say vehicle manufacturers who have spent the last four years lobbying the governments of Africa’s fastest-growing economies. It seems their efforts may be paying off, but there is a way to go yet. Growing a more sustainable manufacturing base is an absolute imperative if we are to lower inequality in Africa, says Martyn Davies, Deloitte Africa automotive industry leader. Many African economies are over-reliant on commodity exports, and their lack of manufacturing activity leaves them exposed to commodity prices’ downswings. The oil dependence in Nigeria and Angola…
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Toyota CEO: SA car industry could get R60bn boost in next 5 years
As much as R60 billion could be invested in the South African vehicle and component manufacturing industries in the next five years, according to Andrew Kirby, CEO of Toyota South Africa and president of National Association of Automobile Manufacturers of South Africa (NAAMSA). In a recent speech at the annual NAAMSA Conference in Kyalami, Kirby said the seven largest vehicle manufacturers are considering R40 billion in direct investments, with an additional R20 billion earmarked for component making. The industry wants to increase the use of locally-produced components in vehicles. “We…
Read MoreKLT GROUP ACQUIRES NEW PLANT IN BRITS NORTH WEST PROVINCE
Chassis manufacturer, KLT Group, has announced the acquisition of a new plant, AVMY Steel Science, a state-of-the-art pressing, welding, assembly and e-coating facility located in Brits. The move forms part of KLT Group’s production expansion and diversification programme in South Africa. Operations at the plant commenced in June 2019 and current customers include Toyota, RG Brose, Ford and MBSA via a (Production Partnership) with Metalsa Germany. KLT Group Chairman Jubin Thakkar says the new plant brings the number of South African-based KLT Group plants to four, with another plant in…
Read MoreWhat’s driving our electric future?
Imagine pulling into your local shopping centre to buy your groceries and leaving the parking lot fully refuelled. Or perhaps you’d prefer to fill up your tank in your own garage overnight? Except you won’t be using fuel at all — rather clean, unharmful energy. This is the reality promised by an electric future. Less clear, is how we’re going to get there. For the National Association of Automobile Manufacturers of SA, the first step is simple: reduce the import tariffs on electric vehicles (EVs). In an initiative spearheaded by…
Read MoreToyota, Suzuki to deepen ties
The automakers are taking stakes in each other. Ma Jie, Bloomberg / 28 August 2019 The collaboration aims to strengthen the alliance between the automakers to keep up with technological advances in the transportation industry. Picture: Moneyweb Toyota Motor and Suzuki Motor are strengthening their alliance by taking stakes in one another, seeking to bolster their position as the auto industry shifts further toward electrified and self-driving cars. Japan’s biggest automaker will acquire about 5% of Suzuki shares for about 96 billion yen ($907 million), while Suzuki will get a smaller holding…
Read MoreVolkswagen SA to start vehicle assembly in Ghana
Volkswagen South Africa (VWSA) will start semi-knocked down (SKD) assembly in Ghana in November this year, giving its expansion into Africa additional momentum. Thomas Schaefer, chair and MD of VWSA, said the group has registered a company in Ghana and will finalise all the details for a joint venture with Universal Motors, its long-term partner in Accra, in the next four weeks. This follows VWSA signing a memorandum of understanding (MoU) with the Ghanaian government in September last year to establish a vehicle assembly facility in the country and assess…
Read MoreAutomotive industry transformation to shift into higher gear
South Africa’s seven vehicle original equipment manufacturers (OEMs) will be establishing a R4 billion automotive industry transformation fund before the end of the year. Andrew Kirby, president of the National Association of Automobile Manufacturers of South Africa (Naamsa), says the seven OEMs are quite far advanced in their discussions with the trade and industry department on this ‘equity equivalent’ project and are currently finalising the business model of the fund with the department. BEE alternative Equity equivalent investments are available to multinational companies that are against selling any shareholding in…
Read MoreSchool of specialisation on drive to the future
The future looks bright for maths and science pupils at the Katlehong Engineering School of Specialisation, on the East Rand, who will be trained as qualified car technicians by five big motor companies in SA. Yesterday, Gauteng education MEC Panyaza Lesufi officially launched the school with a focus on manufacturing, transport and logistics. The school is situated in the eastern economic development corridor where the major industries are transport, manufacturing and logistics. Lesufi said the school has partnered with MerSeta (Manufacturing, engineering and related services Seta) to provide pupils with…
Read MoreVolkswagen on the electric vehicle offensive
Volkswagen Group South Africa is working on a comprehensive electric mobility strategy with the purpose of laying a strong foundation for the introduction of battery electric vehicles into its key brands and removing the risk to its lucrative export business. Read: More EVs for SA roads Thomas Schaefer, chairman and managing director of Volkswagen Group South Africa, said on Wednesday it was a myth if South Africa believed it could carry on producing vehicles with traditional engines when the rest of the world is going electric. Schaefer said at the…
Read MoreNissan, BMW and Volkswagen are in talks to jointly invest in the electric car market in South Africa
The announcement is made by Mike Mabasa, Executive Director of the National Association of Automobile Manufacturers of South Africa (NAAMSA). Will the electric car market finally take off in South Africa? That is the question that three car manufacturers want to address. They are: the Japanese Nissan, the Germans BMW and Volkswagen. Negotiations are currently underway to invest in the South African market. In concrete terms, they want to make proposals to authorities. Among the proposals is a 23% reduction in import duties on electric cars. These duties are currently…
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