To produce Datsun vehicles in South Africa requires sufficient volume, global competitiveness and predictability, says Datsun global head Vincent Cobee.
South Africa, however, currently falls short in terms of predictability, especially in terms of its labour situation, as well as its manufacturing competitiveness.
“If I am to convince my bosses to invest in South Africa, I need a strong case. Today, that is not there.”
Datsun is Nissan’s new low-cost brand targeting developing countries, with the Datsun Go to launch locally in the last quarter of the year. Pricing for the small Indian-made hatchback is expected to be under R100 000.
The brand – popular in the seventies and eighties and now reinvented for a new generation of car buyers – launched in Johannesburg earlier this month.
“We are obviously extremely interested in making the Datsun in South Africa, but maybe not this car,” says Cobee.
He believes the necessary sales volumes are available to the Datsun brand in South Africa and sub-Saharan Africa, but that South Africa will struggle to produce the Datsun Go competitively, especially compared with India.
“This would be the right place to make the car if certain [sales] volumes could be reached,” says Cobee. “But, in South Africa, competitiveness is a challenge.”
He adds that labour volatility does not help either.
“Spending seven weeks not making cars does not help.”
South Africa’s automotive industry last year suffered a seven- to eight-week strike owing to protracted labour negotiations.
Cobee says government, the Nissan plant, labour and the local automotive industry all need to work towards a common objective to make South Africa a manufacturing “place of choice”.