-
Essay / The South African Automotive Industry - 1432
Great emphasis has been placed on globalization in the automotive industry due to the rapid increase in automobile exports. The role of government somewhat distinguishes the automobile industry from other industrial sectors, through the implementation of policies that guide its development (Lamprecht 2009: 7). Government assistance through the Automotive Industry Development Program (MIDP), first established in 1995, has acted as a driving force in promoting competitiveness and export expansion. The MIDP provided an effective communication and cooperation platform for all relevant stakeholders to interact on automotive issues. Automotive industry participants include government, unions, and business (Department of Trade and Industry (DTI) 2004). It should be noted that the Automobile Production Development Program (APDP) replaced the MIDP. Since its inception (ADPD) on 1 January 2013, the South African automotive industry has entered a period of volume – production support focused on production support. Kehbila, Ertel and Brent (2009:310) stated that manufacturing is the predominant manufacturing sector in South Africa. Figuratively speaking, it is the heart of the South African economy. As the industry is large in scale, the challenges ahead are also large and vast, even somewhat complex if analyzed critically. In a global context, a large number of events in the automotive industry are fraught with a large number of challenges and setbacks. Some difficult situations are of major importance. Equipment manufacturers are trying to reduce production and reduce manufacturing costs. They are required to improve quality, improve style, intensify organizational efforts...... middle of paper ...... industry gains through its link with production management supply chain (being led by the supply chain) as a more collaborative approach is offered, knowing no boundaries between companies, including different parts of the supply chain that contribute significantly to the improvement from product quality, to shorter delivery times, to a highly responsive supply chain, at lower costs and with increased customer satisfaction. levels, and in doing so, reveals the importance of the automotive industry. The importance of the automobile industry is largely due to the impact it has on a country's economy. In South Africa, the automobile industry is one of the most influential in the country. in terms of its contribution to South Africa's GDP, contributing 6%, accounting for approximately 12% of South Africa's manufacturing exports, making it a very important factor in the economy. In 2010, 271,000 vehicles were exported.