Date: 13/09/2005
Source: Department of Trade and Industry
Title: Mpahlwa: BMW Manufacturing Plant
Speech by Minister Mandisi Mpahlwa at the BMW Plant in Rosslyn, Pretoria
The Managing Director of BMW South Africa, Mr Wolfgang Stadler
Members of the press
Distinguished guests
Ladies and Gentlemen
This morning’s tour has been informative and I have found the experience truly exhilarating. I have had the privilege during the past few weeks to visit a number of automotive manufacturing plants and to get first hand experience of the variety and increasing depth of our manufacturing capability in this industry. It is very positive indeed.
The investment of R3.5 billion in the new facility is a positive signal of the continued commitment of BMW and demonstrates your confidence in the sustainability and the resilience of the South African economy. Currently, interest rates and inflation are at the lowest levels in decades. We are experiencing steady economic growth, reaching 4.8% in the second quarter of 2005. We believe that this level of growth is sustainable for at least two years and thereafter we should achieve a higher growth rate of at least 6%. In brief we very much share BMW’s confidence in the future of the South African economy!
Ladies and Gentlemen, the automotive industry is the third largest in the South African economy, contributing 6.4% of national Gross Domestic Product (GDP) and 33% of the country’s manufacturing output. South Africa represents 84% of Africa’s vehicle output, and is the 19th largest manufacturer of vehicles in the world. All major Original Equipment Manufacturers are represented in South Africa and eight of the ten top global manufacturers have invested here. Capital expenditure by the eight OEMS for 2003 was R2.3 billion, bringing investment over the past five years to R10.2 billion. Furthermore, vehicle exports have increased at an average annual rate of 33% since 1995 and in 2003, vehicle exports valued R19.4 billion. Due to the broad nature of activities, the auto sector further sustains jobs in a number of supplying industries such as steel and metal, plastics, rubber, textiles and glass, emphasising the impact and reach into the South African economy.
BMW is of course, a significant player. I understand that your relationship with our country dates back to 1932, with the opening of a motor vehicle distribution company called Club Garage, focusing on the import and sale of BMW motorcycles. From those small beginnings your company has, since 1994 invested R5 billion in this production plant. The employment of about 3000 people and contribution to the creation of approximately 36 000 downstream jobs, is a significant achievement. The increases in production volume by 22% since 1998 and the four-fold increase of cars of export markets are the signs of a healthy company. Your operations have established South Africa as one of the top luxury car producers in the world. Proof of your international expansion exists in the export to eight different global destinations, with the major export to eight different global destinations, with the major export markets being United States, Japan and Australia. I proudly remember the Rosslyn Plant winning the JD Power and Associates’ European Gold Plant Quality Award in 2002, and I look forward to this accomplishment being repeated in the near future.
South Africa’s automotive industry is experiencing its best trends since the early 1980s. Together with low inflation, accommodating monetary policy, positive business and consumer demand, enhanced overall new vehicle affordability, stable new vehicle prices, an attractive environment for investment has been created. The automotive sector has emerged as a success story, and we are looking at how we can base our other sector programmes on what we have been able to achieve in this industry. This sector is an example as to what can be achieved by the combined efforts of key stakeholders. Growth in this industry can be attributed to the Motor Industry Development Programme (MIDP); the commitment made by industry players to South Africa as well as to growing and investing in this sector; and the important role played by labour, technology institutions and other government programmes such as Blue IQ.
Ladies and Gentlemen, government remains willing to provide the support needed for the growth of the industry. In addition to increasing investment in infrastructure, and logistics infrastructure in particular, we are focusing on reducing inputs costs by addressing import parity pricing and exploring a developmental administered pricing model. Skills remain a major concern and we are employing significant resources to ensure that the education and human resource development system adequately addresses our economy’s skills needs.
The MIDP is currently being reviewed with the purpose of evaluating its performance to date, enabling its legislation until 2012, and formulating possible recommendations for automotive support post 2012. It is anticipated that the review will be concluded in March 2006. Your participation in the review process is appreciated.
I would once again want to congratulate BMW SA upon the expansion of this facility. The fact that this upgraded plant will be producing over 60 000 units per annum is yet another display of your commitment to advancing economic growth, investment and job creation in our country.
I thank you.
Issued by: Department of Trade and Industry
13 September 2005
Source: Department of Trade and Industry
Title: Mpahlwa: BMW Manufacturing Plant
Speech by Minister Mandisi Mpahlwa at the BMW Plant in Rosslyn, Pretoria
The Managing Director of BMW South Africa, Mr Wolfgang Stadler
Members of the press
Distinguished guests
Ladies and Gentlemen
This morning’s tour has been informative and I have found the experience truly exhilarating. I have had the privilege during the past few weeks to visit a number of automotive manufacturing plants and to get first hand experience of the variety and increasing depth of our manufacturing capability in this industry. It is very positive indeed.
The investment of R3.5 billion in the new facility is a positive signal of the continued commitment of BMW and demonstrates your confidence in the sustainability and the resilience of the South African economy. Currently, interest rates and inflation are at the lowest levels in decades. We are experiencing steady economic growth, reaching 4.8% in the second quarter of 2005. We believe that this level of growth is sustainable for at least two years and thereafter we should achieve a higher growth rate of at least 6%. In brief we very much share BMW’s confidence in the future of the South African economy!
Ladies and Gentlemen, the automotive industry is the third largest in the South African economy, contributing 6.4% of national Gross Domestic Product (GDP) and 33% of the country’s manufacturing output. South Africa represents 84% of Africa’s vehicle output, and is the 19th largest manufacturer of vehicles in the world. All major Original Equipment Manufacturers are represented in South Africa and eight of the ten top global manufacturers have invested here. Capital expenditure by the eight OEMS for 2003 was R2.3 billion, bringing investment over the past five years to R10.2 billion. Furthermore, vehicle exports have increased at an average annual rate of 33% since 1995 and in 2003, vehicle exports valued R19.4 billion. Due to the broad nature of activities, the auto sector further sustains jobs in a number of supplying industries such as steel and metal, plastics, rubber, textiles and glass, emphasising the impact and reach into the South African economy.
BMW is of course, a significant player. I understand that your relationship with our country dates back to 1932, with the opening of a motor vehicle distribution company called Club Garage, focusing on the import and sale of BMW motorcycles. From those small beginnings your company has, since 1994 invested R5 billion in this production plant. The employment of about 3000 people and contribution to the creation of approximately 36 000 downstream jobs, is a significant achievement. The increases in production volume by 22% since 1998 and the four-fold increase of cars of export markets are the signs of a healthy company. Your operations have established South Africa as one of the top luxury car producers in the world. Proof of your international expansion exists in the export to eight different global destinations, with the major export to eight different global destinations, with the major export markets being United States, Japan and Australia. I proudly remember the Rosslyn Plant winning the JD Power and Associates’ European Gold Plant Quality Award in 2002, and I look forward to this accomplishment being repeated in the near future.
South Africa’s automotive industry is experiencing its best trends since the early 1980s. Together with low inflation, accommodating monetary policy, positive business and consumer demand, enhanced overall new vehicle affordability, stable new vehicle prices, an attractive environment for investment has been created. The automotive sector has emerged as a success story, and we are looking at how we can base our other sector programmes on what we have been able to achieve in this industry. This sector is an example as to what can be achieved by the combined efforts of key stakeholders. Growth in this industry can be attributed to the Motor Industry Development Programme (MIDP); the commitment made by industry players to South Africa as well as to growing and investing in this sector; and the important role played by labour, technology institutions and other government programmes such as Blue IQ.
Ladies and Gentlemen, government remains willing to provide the support needed for the growth of the industry. In addition to increasing investment in infrastructure, and logistics infrastructure in particular, we are focusing on reducing inputs costs by addressing import parity pricing and exploring a developmental administered pricing model. Skills remain a major concern and we are employing significant resources to ensure that the education and human resource development system adequately addresses our economy’s skills needs.
The MIDP is currently being reviewed with the purpose of evaluating its performance to date, enabling its legislation until 2012, and formulating possible recommendations for automotive support post 2012. It is anticipated that the review will be concluded in March 2006. Your participation in the review process is appreciated.
I would once again want to congratulate BMW SA upon the expansion of this facility. The fact that this upgraded plant will be producing over 60 000 units per annum is yet another display of your commitment to advancing economic growth, investment and job creation in our country.
I thank you.
Issued by: Department of Trade and Industry
13 September 2005
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
