Pledge to support automotive industry

The initiative will see a joint collaboration amongst stakeholders to respond to opportunities and challenges in the automotive sector.

Trade and Industry Minister Rob Davies, who attended the launch of the initiative on Monday, said the Motor Industry Development Programme (MIDP) has contributed positively to the motor industry in terms of production and export values.

The MIDP is to be phased out and replaced with the Automotive Production Development Programme (APDP). It will come into operation in 2013.

"Production volumes have grown from about 389 000 units in 1995 to a peak of 587 719 units in 2006 before dipping to 373 923 units in 2009, bouncing back to 532 545 units in 2011," Davies said in Port Elizabeth.

He said there was an opportunity to increase the local content in domestically assembled vehicles, coupled with an expansion of the component export basket.

"Today marks the start of a process of on-going collaboration between the public and private sectors in the Eastern Cape to jointly formulate responses and implement key programmes in the automotive sector. The strategic initiatives agreed upon include logistics; supplier development, localisation and incubation; and skills development," said Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism Mcebisi Jonas.

The Support Initiative would work on developing the road and rail corridor between Nelson Mandela Bay and Buffalo city, and between the Eastern Cape and Gauteng, while also undertaking skills and needs audit in the sector. It would also work with the Durban Auto Cluster to implement the Automotive Supplier Competitiveness Improvement Project.