http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.03Change: -0.20
R/$ = 14.82Change: -0.21
Au 1281.07 $/ozChange: -6.18
Pt 1058.50 $/ozChange: -9.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 13, 2009

Ambitious local-content goal 
set by Japanese auto group

Back
Africa|Business|Systems|Africa|Manufacturing|Services|Systems
Africa|Business|Systems|Africa|Manufacturing|Services|Systems
africa-company|business|systems-company|africa|manufacturing|services|systems



Vehicle manufacturer Nissan South Africa (Nissan SA) aims to increase local content on its locally produced cars and pick-ups from the current 40% to 45% in value terms, to 60% over the next two to three years, says Nissan SA senior GM: purchasing Dave Cameron.

He says the company will start by investigating the substitution of high-volume parts – with the associated high shipping costs from Japan – and high-value parts, “with lots of duty on them”, with local parts.

Cameron says his Japanese parent company has advised him to accelerate the search for local content, in an attempt to drive costs down.

This should provide a faint glimmer of hope to the local component manufacturing industry, currently staggering under the weight of the global credit crunch, and the subsequent sharp drop in vehicle sales.

“There is, for example, the 
opportunity for Nissan to source its exhaust systems locally,” notes Cameron, currently on a three-year secondment from Nissan Europe.

“Often chassis parts can be produced locally. 
“The development has already been done overseas, and this can now be transferred to local companies.”

Cameron says the biggest 
limitation in increasing local 
content is the cost competitive-ness of local suppliers compared with Thai, Eastern European 
and South American parts suppliers.

The weakening rand has aided South African component suppliers in this department in recent 
months, but local parts are still 20% to 30% more expensive 
(ex works) than those churned out by their Thai counterparts.

“Before the rand weakened, this difference was 40%,” says Cameron.

Nissan SA hopes to produce 
45 000 vehicles at its Rosslyn plant this year.

In the 2007 financial year, Nissan SA spent around R1-billion on locally made parts, the same amount on local services, support and capital, and R200-million on local materials.

“If we are able to increase the local content to an average 60%, then we are effectively upping our allocation for local business by R500-million,” states Cameron.

Nissan SA currently has around 120 suppliers.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Gibela chairperson Dr Xolani Mkhwanazi
Updated 1 hour 13 minutes ago Dr Xolani Mkhwanazi has joined the Gibela board as nonexecutive chairperson from May 1.   He currently serves on a number of boards, including as chairperson of the Central Energy Fund and nonexecutive director of South32.  He has extensive executive leadership,...
South Africa’s air traffic management agency, Air Traffic and Navigation Services (ATNS), announced on Tuesday that it had signed an agreement with US-domiciled global space-based company air traffic surveillance system company Aireon. Under the agreement, ATNS and...
South Africa's new vehicle sales fell by 9.2% year-on-year to 40 390 units in April, data from the trade and industry department showed on Tuesday. Exports rose 31.5% to 31 028 units compared with the same month last year, the department said.
More
 
 
Latest News
Updated 7 minutes ago Postal services in South Africa risk being disrupted later this week as a union says nationwide strike action is going ahead. The Communication Workers Union (CWU) last week threatened to strike on May 5-6 to demand higher annual pay rises for South African Post...
Updated 26 minutes ago The Organisation Undoing Tax Abuse (Outa) has said it doubts claims by road authorities that 300 000 people had taken up the etoll discount dispensation of 60%. Chairman of Outa, Wayne Duvenage, said: “Anything short of R2.5-billion collected or committed for...
Finance Minister Pravin Gordhan
Updated 28 minutes ago South Africa's Finance Minister Pravin Gordhan said on Wednesday he was confident of meeting fiscal targets for 2016, but that stronger economic growth remained a challenge. In a speech to parliament, Gordhan said the budget deficit would be reduced to 2.4% of gross...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149