Automobile Industry of Africa

[Klausenburg]

Hy, friends! I decided to open this thread because I saw that investments in auto industry across Africa are booming. I saw that there are now car manufacturers in many countries, like Sudan (GIAD) or Ethiopia (Abay). I also know that Egypt has at list a car manufacturer, Al-Nasser. Feel free to post any pics or information about cars manufactured in Africa, factories, and and anything related to african automobile industry.

[DanteXavier]

Good thread idea! Here are some recent aritcles on South Africa's auto industry.

Toyota South Africa To Export 147,000 Vehicles In 2008

Edited Press Release

JOHANNESBURG -(Dow Jones)- Toyota South Africa Pty. Ltd. Tuesday said it expects to export 147,000 Corolla sedan and Hilux vehicles in 2008.

It said that together with component exports, the potential value of Toyota's exports for the year is in the order of 20 billion rand, a number that is close to 1% of South Africa's gross domestic product.

Vehicles manufactured by Toyota South Africa will be exported to more than 40 global destinations in the coming year

"Toyota South Africa's export program will assist in boosting total vehicle exports from South Africa to more than 250,000 units for 2008, with Toyota accounting for close on 60% of those exports," it said.

http://money.cnn.com/news/newsfeeds/...LINE000359.htm

Toyota South Africa to Export 147 000 Cars to Europe, rest of Africa

More than 147 000 Toyota automobiles will be made in South Africa and exported to Europe and Africa in the coming year.

This year the automotive giant is to manufacture a total of 220 000 units of which 147 000 would be exported, it announced on Tuesday in Durban, at a ceremony commemorating its first passenger vehicle exports to African and European countries.


The first exports of Toyota Corolla Sedans had been to Turkey, with the first shipment leaving Durban's harbour last week Thursday.

Toyota would be distributing more of the vehicles produced at the Prospecton Plant in Durban by rail and negotiations are said to be underway with Transnet.

Speaking at the ceremony, Transport Minister Jeff Radebe praised the company for its investment and its drive to export.

"I am also glad to note that the impact of the Toyota SA 220K project is far-reaching and almost 50 percent of the total upgrade investment has been spent with local suppliers with established Black Economic Empowerment credentials, resulting in the creation of new jobs."

About 4 000 new job opportunities have been created by the initiative. The company employs around 10 000 people in South Africa.

Mr Radebe said vehicle exports accounted for 7 percent of the country's total exports, and he attributed the success of the vehicle exports to the government's Motor Industry Development Programme.

"This programme has boosted exports by enabling local auto manufacturers to include total export values as part of their local content total, then allowing them to import the same value of goods duty free."

Investments by the company in South Africa gave the company a R20 billion export potential. This is almost the equivalent of 1 percent of South Africa's current gross domestic product.

The 147 000 units Toyota intended exporting in 2008 would account for 60 percent of the country's vehicle exports.

In 2007, Toyota South Africa exported 59 378 units, amounting to 34.5 percent of the vehicle export market.

Apart from the R300 million the company had invested in training during the past three years. This will include sending 174 people to Japan for training.

The minister noted that this is an appropriate answer to the challenge of skilled labour shortage which continues to dampen growth prospects in the automotive industry - with skilled artisans leaving the country.

"We need to ensure that our retention strategies are in place to keep our skilled workforce."

With regards to environmental problems such as air pollution, global warming and the exhaustion of energy resources, the minister said demands of the automotive industry and all affected needed to respond to these challenges.

"We have indeed noticed that the automotive companies are placing maximum importance on tackling and overcoming environmental and energy-related issues. I am confident that your industry is making every effort to develop technology that will lead to cleaner, more fuel-efficient vehicles," Mr Radebe said.

http://allafrica.com/stories/200803050297.html

Toyota SA 'a global producer'

Toyota South Africa will export over 140 000 vehicles from its Prospecton plant near Durban to over 40 global destinations this year, following a multi-billion rand upgrade that has turned the company from a local supplier to an international export base, as well as Africa's biggest vehicle manufacturer.

In a statement issued this week, Toyota SA says it started the upgrade programme together with its Japanese parent, the Toyota Motor Corporation (TMC), in 2002 to increase the local plant's production volume from 100 000 units per year. TMC owns 75% of Toyota SA.

"This historic occasion aligns Toyota South Africa closely with a number of other Toyota global production facilities, each with annual manufacturing capacity of 200 000 to 250 000 vehicles," Toyota SA CEO Johan van Zyl said at a function this week to mark the start of Corolla sedan exports from the Prospecton plant.

He said that Toyota SA expected to export 147 000 Hilux and Corolla vehicles to more than 40 global destinations in 2008, accounting for close on 60% of South Africa's estimated total vehicle exports, of over 250 000 units, for the year.

The project is expected to create up to 4 000 new job opportunities, while close to half of the total investment has been spent on local suppliers with established black economic empowerment credentials.

According to the company, the local value added across the Hilux and Corolla models is more than 60%, and together with components exports are expected to push the value of Toyota SA's exports for the year to nearly R20-billion - close to 1% of the country's gross domestic product (GDP).

"This [high local content used] makes both of these models compliant with the requirements of the European Free Trade Agreement with South Africa and thus eligible for importation into Europe free of duty," Van Zyl said. "Toyota is the first South African vehicle manufacturer to achieve this."

Investment, skills development
Following the five-year, R2.4-billion plant modernisation programme, Prospecton now features the latest in automotive manufacturing technologies. South Africa is just the third country to make use of a patented stamping technology, while the paint plant features technology that is being used outside of Japan for the first time.

According to Van Zyl, the transition of his company to a global export base started with the export of around 10 000 Corolla sedans to Australia per year, followed by a decision by Toyota Motor Corporation to turn SA into a global manufacturing hub for the new Hilux, for sale in Europe and the rest of Africa.

"The third phase came with the announcement by TMC that the new Corolla sedan would join the Hilux as a volume export model from South Africa to European and African destinations. Both models are produced in right- and left-hand drive variants," he said.

"This required a total transformation in the way we do business and in the way we build vehicles. Fundamental to this process was a multi-billion rand investment in new facilities and technologies that overshadowed anything that the local industry had seen before."

Van Zyl said the company's transition into a global player had been accompanied by an investment of R300-millioin over the five years in training its workforce, which included sending 174 employees to Japan for training in the "Toyota Way".

In addition, he said, the programme had encouraged 12 new international suppliers to invest in South Africa. Eight of the companies are from Japan and four from Europe, with nine having invested in their own right and three others being joint ventures with local companies.

"Toyota South Africa is now firmly established as the largest vehicle manufacturer on the African continent and as the largest vehicle exporter in South Africa," Van Zyl said.

SAinfo reporter

http://www.southafrica.info/doing_bu...ort-050308.htm

[Klausenburg]

I will begin with Zimbabwe.

The only car manufacturer in Zimbabwe is Willowvale Mazda Motor Industries (PVT) Ltd.

It is located in Dagenham Road, Willowvale, Harare
(P.O.Box ST 520 Southerton, Harare), Zimbabwe

The activity begun in July 1980.
Now the models assembled there, are: Mazda 323, Mazda3, Mazda B-Series, BT-50, Mazda T-Series

Mazda 3


Mazda B-Series

[DanteXavier]

Nigeria's Mercedes ANAMMCO Plant




http://anammco.com/

[ufookoro]

Peugeot Nigeria

http://www.peugeotnigeria.com/inform/local/

[Mister79]

Nissan, Renault to build biggest car factory of Africa in Morocco

By John Reed in Paris

Published: September 2 2007 19:52 | Last updated: September 2 2007 19:52

Renault and Nissan will produce up to 400,000 vehicles at a low-cost complex in Morocco in the biggest joint manufacturing investment by the carmaking alliance.

The operation, to be built in the new free-trade port near Tangiers, will produce a new generation of light commercial vehicles for Nissan and variants of Renault’s low-cost Logan car, mostly for export.

Carlos Ghosn, chief executive of Renault and Nissan, said the facility would be more competitive than Renault’s plants in Romania and Turkey and at least as cheap as Nissan’s in China. “We’re talking about a whole set of cars that are competitive and will be exported from this platform,” Mr Ghosn told the Financial Times.

At the weekend, the companies signed a memorandum of understanding with Morocco’s government for the project, the country’s biggest car facility yet and one of the Mediterranean region’s largest. They expect to sign a final agreement by the end of the year.

Renault and Nissan will invest €600m in the project, plus another €200m-€400m depending on the vehicles produced. The complex will have the capacity to build 200,000 vehicles from 2010, with planned capacity later rising to 400,000.

Mr Ghosn faces pressure to squeeze more cost savings out of Renault and Nissan’s eight-year-old alliance as the companies struggle to meet profit targets in western Europe and the US.

He said Renault remained on track to achieve its goal of adding 800,000 units per year by 2009. “We’re working on it, and there is no change.”

Renault and Nissan purchase jointly and share engines and other parts for some vehicles, but the alliance is seen as under-exploited in common manufacturing. The carmakers are building a plant in Chennai with India’s Mahindra & Mahindra, and currently make vehicles together on a small scale in Mexico.

Odile Desforges, Renault-Nissan’s head of purchasing, said the Moroccan project would push the two groups’ engineering departments to co-operate more closely.

http://www.ft.com/cms/s/0/e6645834-5...0779fd2ac.html

“Here there’s a real benefit to have more common components and be more competitive together,” she said. “It’s a new step for the alliance.”

[Mister79]

Moroccan car Laraki

Laraki is the only African autocompany who builds sportcars in Africa, the build cars like the Borac and the Fulgara.




http://www.laraki-automobiles.com/fr/index.htm

[tahir.DDS]

the cars industry is booming in Africa

[Pule]

Hummer SA starts rolling

10 October 2006

General Motors began the first production outside the United States of the Hummer H3 sports utility vehicle at a plant in Port Elizabeth, South Africa on Tuesday.

GM said it expected eventually to produce more than 10 000 units of the H3, the newest and smallest model in the Hummer range, for export to Europe, the Middle East and Asia under a US$3-billion contract awarded to its South African subsidiary in April 2005.

Production of a right-hand drive version, for export into right-hand markets in Europe and Asia as well as for local sale, will begin at GMSA's Struandale, Port Elizabeth plant in the second quarter of 2007.

"The GM team in South Africa has demonstrated to the world that they have the people, the leadership, the technology and the skills to execute the type of automobile engineering and assembly that is required in the new global economy," Maureen Kempston Darkes, president of GM Latin America, Africa and the Middle East, said in a statement on Tuesday.

Vote of confidence
GM South Africa MD Robert Socia described the project as "one of the most important milestones in the history of GM in South Africa," adding: "It's significant that GM chose to place the H3 contract with South Africa, as it says a lot about the confidence GM has in our ability to deliver."

The Hummer H1 and H2 models - adapted from the Humvee vehicle developed for military uses - have been sold primarily in the US and Canada, although GM began exporting the H2 to countries in Europe, Asia and the Middle East in 2004.

Since acquiring the brand in late 1999, GM has grown its Hummer sales from roughly 1 000 vehicles a year to more than 60 000 in 2005, when it launched the H3 in the US.

"With the assembly of Hummer H3 in South Africa, we take the next important step to grow the Hummer brand around the world," said Hummer general manager Martin Walsh.

GM describes the H3 as "an authentic Hummer, offering the brand's iconic design and famed off-road capability in a midsize and more accessible package.

"H3 aims to become the leader in off-road performance among mid-size SUVs, just as the H2 achieved that stature among full-size SUVs. In addition, H3 delivers surprisingly comfortable on-road manners and a clean, well-crafted interior."

The South African-built H3 will be available with a new 242 horsepower (180 KW) Vortec inline 5-cylinder engine, choice of manual or automatic transmissions, and a premium, full-time four-wheel-drive system.

Port expanded, offroad track set up
South Africa is the only manufacturing site outside of the United States to assemble the Hummer H3, using components imported from Tilsonburg in Canada and from GM's Shreveport, Louisiana plant.

The National Ports Authority recently completed a R7.5-million expansion of the car terminal at its Port Elizabeth port in the Eastern Cape to accommodate the imports and the subsequent exports of completed H3 Hummers.

And as the first South African-made H3s rolled off the production lines in Port Elizabeth on Tuesday, GM South Africa launched a R1-million extreme off-road test track built specifically to show off the H3's capabilities.

"We can't wait to put the H3 through its paces," GMSA vehicle assembly operations director Mike Pearton said last week. "The Hummer will seriously impress on this track, which is designed to test a 4x4 vehicle to the extreme."

SouthAfrica.info reporter

[Pule]

BMW plant in South Africa

Assembling vehicles.
Production.
Over the past three decades, BMW South Africa has moved from operating as a Completely Knocked Down (CKD) vehicle production plant, assembling vehicles with limited customisation possibilities for the local market, to a world class plant capable of producing customised cars for discerning customers across the globe.

This evolution is largely due to BMW's billion rand investment in the Rosslyn plant in the mid 90's. The investment, used to upgrade the production facility into one of the most modern in the world, brought Rosslyn in line with other BMW plants across the world and earned it the title of BMW World Plant Rosslyn. BMW recently announced the decision to invest a further R2 billion into the South African facility in preparation for the production of future models.

It is anticipated that the upgraded plant will be capable of producing up to 60 000 units per annum. This will, in turn, result in a substantial increase in BMW's export capacity to R50 billion worth of BMW exports from South Africa over the lifecycle of future models.

BMW South Africa Rosslyn plant recently started with the production of the fifth generation of the 3 Series. This was the first time in the history of the plant that the production of the new model happened at the same time with the German plants.

[Pule]

Mercedes Benz, South Africa

Mercedes-Benz South Africa is an automotive company with a global presence. Mercedes-Benz South Africa manufactures Mercedes-Benz and Mitsubishi vehicles at its manufacturing plant in East London. The company`s headquarters are located in Zwartkop, Gauteng, from where the Mercedes-Benz, smart, Maybach, Mitsubishi Motors, Freightliner, Western Star and FUSO brands are marketed and financed.

The East London plant, which produces the Mercedes-Benz C-Class, leads other South Africa plants in initial quality. That's according to the latest JD Power and Associates' South Africa Initial Quality Study TM (IQS).

Vehicle assembly plants are ranked based on the number of defects and malfunctions in vehicles produced at the plant.

“The Mercedes-Benz East London plant was recently retooled to produce left-hand drive vehicles, which are exported to the United States,” explains Brian Walters, vice president of J.D. Power and Associates Europe, Middle East and Africa operations. “It is particularly impressive that this plant, in the face of major changes to its production line, has been able to produce vehicles of such outstanding quality.”

"It is a great honour for us to have received this award and we all feel very excited," says plant leader and management board member: manufacturing, Joachim Follmann. "It is also important recognition for us in light of all the challenges our people were facing - taking 2 500 employees through extensive training over four months, and the ramp-up, in which the production volume was continuously increased to optimise the equipment availability.

"We have achieved this through constant adherence to processes and the exceptional discipline of everybody when doing her or his job. To build a car is an extremely complex task and every single employee plays an important role in achieving our objectives.

"Over the past year, we have continuously improved our quality management system and our focus was on achieving the quality through robust processes and qualified people and not through rework. We will continue this strategy and keep an eye on our competitors, whom we know are on our heels."

[oshon]

Guys, this is an interesting website that combines the most creative african minds in auto desing and engineering. See for your self!!! http://aada.50webs.com/

[oshon]

Hey guys, I dont know how to post pictures, can someone post some of the pictures from the website stated above.

[SA BOY]

there is a difference between manufacturing and assembling knock downs. KDs are done all over Africa but there are only a few full production assembly facillities in Africa.
South Africa has the biggest manufactuting facilites and off to the top of my head have Toyota in Durban, BMW in Britz, Mercedes in East London, VW in Port Elisebeth, Delta(Opel/Isuzu etc) in Pretoria.
Any other guys I have missed?

[Mosi-oa-Tunya]

Originally Posted by SA BOY

there is a difference between manufacturing and assembling knock downs. KDs are done all over Africa but there are only a few full production assembly facillities in Africa.
South Africa has the biggest manufactuting facilites and off to the top of my head have Toyota in Durban, BMW in Britz, Mercedes in East London, VW in Port Elisebeth, Delta(Opel/Isuzu etc) in Pretoria.
Any other guys I have missed?

Ford has manufacturing facilities in Port Elizabeth and Roslynn, Pretoria. Delta-General Motors is also in Port Elizabeth.

[DanteXavier]

Key challenges ahead for SA as power shifts in global auto sector

South Africa should position itself as a key location for growth in the global automotive industry, National Association of Automobile Manufacturers of South Africa president and Toyota CEO Johan van Zyl said at the weekend.

Speaking at the presentation convened to release the results of a global automotive survey conducted by financial services group KPMG, Van Zyl said that worldwide industry was again in flux, with the balance of power shifting from the traditional manufacturing powers of the US and Western Europe (Germany, France and Italy) to Japan, as well as Brazil, Russia India and China - the so-called BRIC countries.

But where does this leave South Africa?

"Well, I would like to see South Africa becoming the ‘S' in the ‘BRIC' acronym, [that is] a major player in the global plans of the automotive giants. But to achieve this is not going to be easy," Van Zyl declared.

The introduction of the Motor Industry Development Programme (MIDP) in 1995 had facilitated the stabilisation and consolidation of the local automotive sector with a ramp-up in sales and production; improved quality of vehicles and components; and the formalisation of South Africa as one of the largest exporters in the southern hemisphere.

However, despite this progress, Van Zyl said that a "huge effort" was still required to attain the industry's vision of producing one-million vehicles by 2020 and elevating the industry's standing as a true global industry participant.


CONTINUED STATE SUPPORT VITAL
He outlined five "distinct challenges" that needed to be overcome including: improving the regulatory environment by fully embracing International Standards Organisation norms; meeting environmental requirements; compliance with local operating and planning conditions, such as employment equity (EE) and broad-based black economic-empowerment (BBBEE); and continued support for the industry as has been the case under the MIDP.

Van Zyl said that the industry support measures afforded by the programme played a huge role in a company's decision to build vehicles locally or to import, and the information it contained was also "cardinal to future export programmes and investment".

With regard to his expectations for the replacement programme, which was scheduled to be released in August, Van Zyl commented: "As an optimist, I am of the opinion that the programme will be structured in such a way that it will support the future growth of the industry, not just because I'm optimistic, but because this industry is enormously important for the South African economy."

"The second challenge facing the local motor industry as players in the global supply network is that of developing the supply network, the suppliers - these companies are key to a manufacturer's success in both the local and export markets."

Despite ongoing development the local supplier base needs ongoing development, however, it was noted that links to international partners were beneficial.

Van Zyl reiterated that without a "big, strong, competitive supply base" there was no reason to assemble motor vehicles in the country.

Another necessity in the advancement of the sector was "people development" through training and skills development. The creation of strong managerial capability was highlighted as an area of importance and a factor that set Chinese and Eastern European competitors apart.

Logistics and cost competitiveness were identified as obstacles that needed to be overcome.

Being located at the tip of Africa means the industry needed to be "even sharper" in controlling and managing costs, "savings made in the manufacturing of vehicles and components can easily be negated in inefficient logistics systems", Van Zyl added.

Long distances between suppliers and production plants, and then between plants and ports, traffic congestion, rising fuel costs and inefficient rail transport - all impact on manufacturers' cost structures.

Van Zyl also noted that in the South African context, with high levels of crime, manufacturers also had to spend "enormous amounts of money on security" - much more than overseas competitors. The estimated spend by vehicle manufacturers a year on security was about R200-million, adding in components suppliers, vehicle distributors and dealers this figure was closer to R500-million a year.

And finally, softer issues that needed to be dealt with in order to grow the industry included contributing to the development of the country through corporate social investment, protection of the environment through emission control, and the upliftment of employees through EE and BBBEE.

Van Zyl emphasied that the industry - which contributes 7,3% to gross domestic product - should not delay in rising to these challenges.

http://www.engineeringnews.co.za/art...hp?a_id=128711

[DanteXavier]

GMSA to spend R481m to upgrade facilities, still sees market gaps

Vehicle manufacturer General Motors South Africa (GMSA) will invest R481-million in its operations this year, upgrading its production facilities and tooling.

In addition, construction is well under way at the company’s new vehicle conversion and distribution centre in Aloes, a multimillion-rand storage and logistics facility.

The centre is due to open during the second quarter of this year.

Other plans for GMSA include the launch of ten new products during the course of the year, in an attempt to boost market share. This continues the trend set last year, when the company also launched ten new vehicles.

GMSA’s retailer network, now standing at 152 outlets, invested R812-million over the past few years in upgrading its facilities.

GMSA sales and marketing vice-president Malcolm Gauld says the company remains confident that its portfolio of new products will provide greater choice to customers.

“It also allows us to compete aggressively in this extremely competitive market.”

Gauld adds that although the company expects the South African vehicle market to decline by between 2% and 3% in 2008 – which is slightly inside what others in the industry are forecasting – long-term growth still remains positive.

He emphasises that opportunities remain in the vehicle market, even though the industry faces significant challenges this year, such as higher interest rates, inflation, petrol prices and general erosion of consumer disposable income.

However, Gauld notes that he remains positive about the future of the industry.

He says the South African vehicle market enjoyed a buoyant performance over the last few years, and that the current slowdown is normal if one considers the interest rate increases and the introduction of the National Credit Act last year.

“With the 2010 soccer World Cup on our doorstep, we have to look positively at the demand for new vehicles.”

A key area for GMSA going forward is the light commercial-vehicle (LCV) market, where it secured an overall share of 23% in 2007, through buoyant sales of the Isuzu KB and Corsa Utility pick-ups.

“Even though the LCV market is likely to remain relatively flat versus 2007, we will be looking to continue growing our volumes in 2008,” says Gauld.

http://www.engineeringnews.co.za/art...hp?a_id=125011

[DanteXavier]

Commercial car sales boost Toyota’s rivals in Kenyan market race

For nearly a decade as the Kenyan economy gradually slipped into a recession squeezing the new motor vehicle market, Japanese car maker Toyota stood out as the more versatile dealer controlling more than a quarter of the entire market.

Having held forte during these bad times, it had been expected that an upturn in the economy could only work to the advantage of Toyota — enabling it to stretch its lead. But this has not happened.

Until 2004, Toyota had firmed its grip on the new car market and opened a market share gap of close to 10 per cent with its closest rival. This had narrowed to about 2.4 per cent at the end of last year.

This out turn of sales is being attributed to the change in the market structure that has come with increased pace of economic growth. As the economy entered the recovery mode, demand for new motor vehicles has been most robust in the commercial segment of the market where Toyota — with a brand line that mainly comprises of saloon cars — is least represented.

Toyota’s rivals, especially General Motors East Africa (GMEA) and CMC Motors with a wide range of commercial brands in their stable, have gained an easy advantage in the marketplace. Kenya Motor Industry (KMI) statistics show that over the past three years Toyota East Africa has been losing market share to CMC and General Motors.

The Japanese auto maker’s market share dropped to 22 per cent in 2007 from 26.6 per cent in 2005. During the same period, CMC Motors’ share of the market rose steadily from 14.8 per cent in 2005 to 19.6 per cent last year — bringing it within touching distance with Toyota.

The company now stands second in the market share parade having climbed the ladder from the fourth place in 2005.

GMEA, on the other hand, has been working on a turnaround plan with an aim of reclaiming the number two position it lost in 2006. The American auto dealer’s market share has expanded from 16.2 per cent in 2005 to 18.5 per cent last year lighting the fire from under the seats of the market leaders.

Analysts reckon that a realignment of the market that may see Toyota lose its top position is under way.

“The saloon market is sluggish and this means that Toyota needs to speed up,” says a source at PricewaterhouseCoopers who requested not to be named as he consults for the major auto companies.

In this new dispensation, GMEA and CMC are the auto makers to watch given that they have a heavy presence in the large car division that is the growth market.

The saloon car market has in the past three years come under serious attack from the imported second hand vehicles increasing the pressure that Toyota has been feeling since the market was liberalised in 1992.

The magnitude of this pressure lies in the fact that the imports now account for about 70 per cent of the saloon car market.

This has hurt Toyota most since it does not have large vehicles such as trucks and buses in its line up and has relied on the saloon, 4-wheel drives and light pick ups to drive growth.

“Our market share is down because we don’t have trucks and buses in our line up, which seem to be selling more units at the moment,” said Simon Mwiti, national sales manager of Toyota East Africa.

Mr Mwiti said that Toyota has focused mainly on corporate bodies for business as individuals have turned on the cheaper second hand car option.

The increased demand for trucks and buses has been lifted by the economic boom that has gripped Kenya since 2004 as sectors such as transport, agriculture and construction-key beneficiaries of the economic upturn, upped their demand for this category of vehicles.

A perfect illustration of the increased sale of buses plays out in the transport sector, especially in Nairobi, where the 14-seater vans are being replaced by buses as big investors such as Citi Hoppa, Double M and Kenya Bus Services intensify their activity in the market.

The move has seen a change of fortune for auto dealers notably GMEA and CMC, which relied heavily on the large car division as they grew their profits, market share and cash reserves.

Listed auto firm CMC posted a 42 per cent increase in net profit to Sh618 million for the year ended September on the buoyant performance of the transport sector.

The firm said its revenues climbed 21 per cent to Sh8.9 billion from Sh7.3 billion.

And the firm recommended a bonus share payment of one share for every five held, a move prompted by its growing cash reserves.

But the Japanese auto maker is not taking the battle lying low as word from Toyota East Africa has it that the firm won’t cede the top spot without a concerted fight. This sets the stage for a bruising battle for control of the new motor vehicle market as both CMC and GMEA are committed to occupy the top spot in less than two years.

“Our goal is to grow by 20 per cent this year and overtake Toyota by 2009,” says William Lay, managing director of General Motors East Africa, adding that GM’s strategy of replacing the 14-seater public transport vans with GM’s Isuzu buses was beginning to bear fruit.

According to Mr Lay, the public service vehicle (PSV) sales now account for about 60 per cent of GM’s local sales.

Besides pushing its PSV agenda, GM is also keen to revamp review its dealership arrangement and possibly replace it with a single sale unit to be co-owned with it’s the current seven dealers. Currently, domestic sales have been undertaken by GMEA and the seven dealers, who operate independently.

But GM reckons that the single sales unit should boost sale volumes and enhance the firm’s servicing that is seen to be trailing the company’s competitors.

Buoyed by the growth of its truck, buses and tractors division, CMC is also talking big. “Our goal is to be the number one player as soon as possible,” said the firm’s chief executive, Mr Martin Forster.

For Toyota East Africa, the firm has pegged its strategy on increased customer care by increasing and upgrading its service centres and boosting its brand count with the lucrative passenger and light commercial vehicle its focus.

In recent years, churning high quality cars with high levels of technology that are environmentally friendly has emerged as the new arsenal to grow market share across the world.

And Toyota has established itself as the most admired car manufacturer in the world, which has been interpreted as a byword for reliability.

This feat saw Toyota last year realise its long standing ambition of becoming the world’s biggest vehicle producer by edging past GM. Toyota sold 9.36 million vehicles last year compared to GM’s 9.3 million vehicles.

This is the quality tag that the local Toyota outfit intends to flag as it seeks to defend its top position by promising top class after sale service.

With eight brand lines and over 25 models, Toyota East Africa is also looking at increasing new brands of passenger car and light commercial vehicles, which has helped lift GMEA’s market share.

http://www.bdafrica.com/index.php?op...68&Itemid=5810

[kulani]

Originally Posted by Pule

BMW plant in South Africa

Assembling vehicles.
Production.
Over the past three decades, BMW South Africa has moved from operating as a Completely Knocked Down (CKD) vehicle production plant, assembling vehicles with limited customisation possibilities for the local market, to a world class plant capable of producing customised cars for discerning customers across the globe.

This evolution is largely due to BMW's billion rand investment in the Rosslyn plant in the mid 90's. The investment, used to upgrade the production facility into one of the most modern in the world, brought Rosslyn in line with other BMW plants across the world and earned it the title of BMW World Plant Rosslyn. BMW recently announced the decision to invest a further R2 billion into the South African facility in preparation for the production of future models.

It is anticipated that the upgraded plant will be capable of producing up to 60 000 units per annum. This will, in turn, result in a substantial increase in BMW's export capacity to R50 billion worth of BMW exports from South Africa over the lifecycle of future models.

BMW South Africa Rosslyn plant recently started with the production of the fifth generation of the 3 Series. This was the first time in the history of the plant that the production of the new model happened at the same time with the German plants.

Here's a map of BMW manufacturing and assembling plants around the world. You will see that BMW has a presence in South Africa (Pretoria) and Egypt (Cairo)

[kulani]

SA vehicle exports make inroads

8 October 2003

BMW South Africa

Over the past five years, BMW South Africa's Rosslyn plant near Pretoria has moved from operating as a Completely Knocked Down (CKD) production facility, assembling vehicles with limited customisation possibilities for the local market, to a world-class plant capable to producing customised 3 Series vehicles (4-door, right and left-hand drive) for global export.

This evolution is largely due to BMW AG's R1-billion investment in the Rosslyn plant during the mid 1990s. The investment, used to upgrade the production facility into one of the most modern in the world, brought Rosslyn in line with other BMW plants worldwide.

In the five years since 1998, BMW SA has grown its overall production volume by 220%, while its production of cars for export has quadrupled.

Almost 80% of BMW's production of 55 555 units in 2002 were exported. Primary markets for South African manufactured BMWs are the United States (22 000 units or 47%) and Japan (13 000 units or 18%). Australia received 5 500 units or 8% of production, while the balance went to New Zealand, Hong Kong, Singapore and Taiwan.

Export production was up 18% in 2002, with over 43 000 units leaving South Africa compared with 36 750 in 2001.