Mercedes-Benz SA drives component supplier initiative

16 Feb 2012

The South African automotive website 3D Car Shows reports that Mercedes-Benz South Africa (MBSA) held discussions with its component suppliers to consider future operations at the company's East London plant. This follows an initiative MBSA introduced last year, in collaboration with the Department of Trade and Industry (DTI) and the East London Industrial Development Zone (ELIDZ).

The initiative aims to bolster a local component supply-chain and to openly debate the various challenges facing the industry.

MBSA President and CEO, Dr Martin Zimmermann said that the company would like to increase localisation and improve competitiveness "in this important part of the SA auto industry." He added that car manufacturers and their component suppliers need sustained growth. "Together," he said "we are a key contributor in the manufacturing sector and to the economy as a whole." According to the National Association of Automobile Manufacturers of South Africa (NAAMSA) the automotive industry contributes in excess of 6% annually to the country's GDP and is responsible for well over 28,000 jobs.

In December 2010, MBSA's parent company Daimler AG announced that it intends investing R2 billion in the local plant, in order to produce the next-generation Mercedes-Benz C-Class. Since then, MBSA has engaged extensively with various interest groups, including all its suppliers, the DTI and the ELIDZ, in order to find ways to enhance the local industry's global competitiveness, and to attract further investments from international component manufacturers. The Minister of the Department of Trade and Industry, Rob Davies, publicly expressed support for the initiative and pledged the South African government's commitment to support the automotive industry in South Africa, 3D Car Shows website reports.

Read the full article on http://3d-car-shows.com.