World automakers have announced investments of more than R7 billion in South Africa so far this year. These include Toyota, General Motors and Volkswagen which is investing R750 million in a new paint shop for its Eastern Cape which will be ready by 2007.
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“This will improve our flexibility, processes and capacity,” said William Stephens, general manager, VW sales and marketing, speaking at the second annual South Africa Automotive Conference.
The global investment could see South Africa’s vehicle production increasing to more than 800,000 by 2010. “In 2004, total production was 470,000. With growth of 10% each year, which we think is highly conservative, we get to 800,000 by 2010.”
He told delegates not to be intimidated by the global picture. South Africa accounted for just 0.8% of worldwide production and only 0.4% of global sales. The Asia-Pacific region, by contrast, accounts for 32.4% of global production and 24.4% of sales.
Vehicle exports had doubled between 2000 and 2004 to account for 26% of domestic production. Exports had risen from R12.6 billion to be worth R22 billion last year.
Urging delegates to “go bold, go global” he said that one of the priorities for the industry was to embrace black economic empowerment and develop the skills of the black workforce. VW was spending R40 million a year on training, he said.
