South Africa sees its automotive industry as a jewel in its manufacturing industry, nowhere more than the Eastern Cape, the self-styled "Little Detroit" of South Africa and home to DaimlerChrysler, Volkswagen and General Motors. This is stretching the imagination somewhat, nevertheless there is growing optimism not just in the eastern Cape but throughout the country over the future for the industry. The dilemma is for South Africa's auto industry to decide which way it wants to turn, a dilemma we will examine in detail.