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Ford - Neale Hill

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Ford - Neale Hill

NEALE HILL - Ford
NEALE HILL - Ford

27th March 2019

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As a democracy, we’ve made huge progress since 1994, but the ideals that we hoped for as a nation seem to not yet have been realised by many South Africans.

Within the vehicle assembly and auto component industry specifically, transformation, job creation, education, skills development, and technology transfer are imperative to ensure the long-term sustainability of the sector, which currently contributes around 7% to GDP. Unfortunately, progress in these areas seems to have plateaued over the past few years, and investor confidence is wavering.

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Because our domestic market, which accounts for less than 1% of global vehicle production, is not big enough to generate sufficient economies of scale, growth of the sector hinges on the expansion of global export opportunities. As an industry, we have already made great progress, increasing total export volumes from 239 465 vehicles in 2010 to 351 154 in 2018, and potentially climbing to over 400 000 units by 2020. Interestingly, when domestic and export projections for 2020 are combined, the SA automotive sector could potentially exceed 1-million vehicles for the first time, which is in line with government’s stated targets of the new Automotive Production and Development Programme, and will equate to 1% of global production. What a historic achievement that would be! Government, labour and industry will have to work hand in hand to make this a reality.

To get the economy on a positive growth trajectory, bold and decisive action is needed in the private and public sectors. And the issue of youth unemployment has to be addressed as a matter of priority, not just a statement of intent.

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On this anniversary of a seminal moment in SA’s history, I would like to take the opportunity to challenge others in leadership positions to usher in these important discussions at the boardroom table. To agitate for more incisive changes to expedite transformation and job creation, so that over the next 25 years we may leave a legacy of which we can all be proud.

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