Next phase of auto policy to focus on black companies – Zuma

The next phase of automotive policy development would have a strong focus on creating black-owned suppliers in the automotive value chain, said President Jacob Zuma on Tuesday as he opened Toyota South Africa Motors’ (TSAM’s) new Fortuner and Hilux production lines in Durban.

The Department of Trade and Industry (DTI) had started the process of drafting a successor programme to the Automotive Production and Development Programme (APDP), which was scheduled to come to an end in 2020.

“Black participation in the automotive value chain is mainly as employees and not as business owners. This should drastically improve in the next phase [of policy development],” said Zuma.

He noted that the “next phase of government policy” would focus on integrating local companies, especially small black-owned companies, into the supply chain.

This message was confirmed by DTI officials attending the function.

Government incentives – through the APDP – of R7.8-billion had facilitated local automotive industry investment of R28.5-billion, leading to exports valued at more than R150-billion last year, said Trade and Industry Minister Dr Rob Davies.

National Association of Automobile Manufacturers of South Africa director Nico Vermeulen said it would be “challenging” to improve the number of black-owned companies in the automotive supply chain. However, he emphasised that the industry was “ready to play its part”.

“The industry accepts it as a moral and economic imperative.”