By Staff Reporter
17/11/2015
BMW has announced that it will manufacture the next-generation X3 at Rosslyn after the group announced a R6-billion investment in its Rosslyn plant.
The Executive Mayor of Tshwane today welcomed the good news that The Executive Mayor, who is currently in Bonn, Germany as part of his role as a global champion for Sustainable Development in Local government and the C40 Group of Sustainable Cities, said the news could not have come at the right time for South Africa after the recent labour market quarterly survey by Statistics South Africa showed some decline in the automotive industry.
“We are awaiting the eminent arrival of the X3 and are excited about the future prospects of the Rosslyn Plant and believe that this investment will indeed create an opportunity to increase the localization of component manufacturing when BMW announces details of this investment” – said Ramokgopa.
“We see this investment as a step in the right direction for Africa as a future market for exports as well as the newly reviewed Automotive Production and Development Programme (APDP) by our Trade Ministry , and we are certain it will increase our footprint in the manufacturing industry and automotive industry” Ramokgopa added.
Executive Head of Public Affairs, Media Relations and Mayoral Spokesperson, Mr Blessing Manale, said in a statement said that the Industry’s contribution to South Africa’s Gross Domestic Product (GDP) during 2011 is estimated at 7.6%. The automotive industry employs almost 30 000 people and accounts for at least 35% of the export of passenger vehicles. The Tshwane Automotive Industry hosts five of the major original equipment manufacturers in the country, namely: Nissan, BMW, Tata, MAN and Ford. Other original equipment manufacturers such as Daimler, Mahindra and Volkswagen are also represented in Tshwane. Moreover 40% of all passenger vehicles manufactured in South Africa are produced in Tshwane.
The automotive and components industry in the City of Tshwane has a turnover of about R30 billion in current prices. It generates about a quarter of the manufacturing sector’s value add and contributes about 3.3% to the City’s economy. It is represented by more than 200 companies employing almost 18 000 people.
The comparative and competitive advantages associated with the Automotive Industry in the city calls for the accumulation of more domestic and foreign investments and this can only be achieved through the creation of an enabling environment to support the continuous growth and development of this sector. To this effect, the City is entering into a 3 year partnership agreement with the Automotive Industry Development Corporation (AIDC) with a view of enhancing support to the automotive sector due to its strategic importance towards the growth and development of the Tshwane Economy. Our areas of collaboration with AIDC in the next 3 years include the following:
• Skills development;
• Stakeholder mobilization and management;
• Implementation of automotive strategic programmes and projects; and
• The development of sector strategies and participation in the City’s sector panel of experts.
In the 2013/14 financial year, the following projects will be jointly implemented with AIDC emanating from our areas of collaboration:
• The Gauteng Automotive Academy aimed at the training of 120 youth in the City on Automotive related skills;
• The hosting of two sector forum breakfasts aimed at creating a platform for the City to engage with role players in the automotive industry towards the growth and development of the sector;
• The development of a profile for the Tshwane Automotive Sector;
• The establishment and operation of the Tshwane Automotive City PMO aimed at conducting detailed planning and mobilizing resources towards the implementation of the Tshwane Automotive City Project; and
• Participation in the Executive Mayors Sector Panel of Experts aimed at strategically analyzing the sector in order to determine growth potential and possible constraints.
• Undertaking a comprehensive study to analyse the factors that hinder the competitiveness of the components and parts manufacturers
