The Automotive Industry Development Centre (AIDC) says it can contribute to the success of government’s New Growth Path by supporting the automotive industry in increasing production to 1.2-million vehicles by 2020.

The organisation aims to assist government in achieving its goal of producing more vehicles and creating more jobs by providing strategic solutions and managing government projects for the South African automotive industry.

The centre assists enterprises in the automotive industry to increase their productivity, efficiency and competitiveness by providing them with best practice solutions in areas such as supply chain development, supplier development and skills development and training.

AIDC CEO Barlow Manilal says that specific programmes and interventions are in place to assist companies in enhancing their global competitiveness and capabilities by developing businesses in the automotive industry.

He adds that government’s vehicle production and job creation goal can only be achieved through a coordinated and systematic approach by all key automotive stakeholders, which includes government and the private sector.

“A conducive economic environment with stable policy provisions by government is also a key success factor,” he says.

“Enterprises that make use of the AIDC to improve their skills development and training, as well as their supply chain and supplier development projects, are more efficient and can, ultimately, help to increase the production of vehicles in South Africa,” says Manilal.

In addition, the centre focuses on medium-term interventions, which culminate in long-term sustainable results, with an emphasis on greener technologies and a bias towards training, upskilling and job creation initiatives.

The organisation explains that government’s industrial development-related objectives, indus- try goals and growth plans largely focus on global competitiveness, job creation and skills development initiatives that encourage foreign direct investment and transformation.

Projects
Earlier this year, with the support of the Gauteng provincial government, the AIDC was involved in a R115-million initiative to establish the country’s first supplier incubation centre, which develops black-owned component suppliers, at vehicle manufacturer Ford Motor Company of Southern Africa’s plant, in Silverton, Pretoria.

The 7 200 m2 supplier incubation facility will provide six start-up small businesses with professional business and technical support and growth opportunities within an industry nurturing environment.

AIDC supply development senior project manager Dineshan Moodley says the facility is South Africa’s biggest automotive incubator, focusing on transforming the automotive value chain through the support of the provincial government. “The programme deals with all the barriers of entry that have traditionally prevented new entrants into this very challenging sector,” he says.

Further, the organisation has set up a multi- purpose call centre aimed at providing support to its various projects and programmes.
The distressed companies’ helpdesk informs companies about assistance programmes, including nonfinancial support such as marketing and soft skills development, as well as facilitation services directing the company to the relevant role-player in the province for further assistance.

Moodley says the provincial government took a proactive step in engaging companies that have been negatively impacted on by the recession. “The comprehensive database on distressed companies, as well as retrenched employees, is a starting point to institute interventions to resolve unemployment and encourage business sustainability,” he adds.

The centre is also developing a database which will assist retrenched workers in finding new employment.

Meanwhile, the AIDC and the Gauteng provincial government have launched a project to convert minibus taxis to run on petrol and liquefied petroleum gas (LPG). This is part of the province’s green agenda focusing on reducing carbon emissions.

Seventy minibus taxis from the South African Taxi Council took part in the country’s biggest LPG pilot project. For logistical reasons, the pilot was conducted in the Tshwane region. The organisation says the project has been environmentally and economically beneficial, and that it is satisfied with the progress made.

A further 150 minibus taxis will be converted to run on petrol and LPG during the 2011/12 financial year. Refuelling stations will also be developed in partnership with petrochemicals group Sasol. These initiatives form part of the AIDC’s efforts to assist government in developing strategies to achieve a greener economy.

Meanwhile, the AIDC’s two-day Automo- tive Industry Conference will take place on September 6 and 7 at the Birchwood Confer- ence Centre, in Boksburg. The conference will be themed around the provincial government’s response to the national government’s auto- motive policy and incentives.

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