SA a ‘logical choice’ for African Datsun production plant, says Cobee

12th March 2015 By: Natalie Greve - Creamer Media Contributing Editor Online

SA a ‘logical choice’ for African Datsun production plant, says Cobee

Vincent Cobee

Datsun global head Vincent Cobee has described South Africa as the “logical choice” when it comes to the establishment of vehicle manufacturing operations that target the African automotive market, but cautions that the country will first need to significantly overhaul its level of competitiveness, predictability and flexibility before the Japanese manufacturer would consider local capacity addition.

“I’m very, very keen on the country, the market and the overall prospects of the African continent, and making cars in South Africa would be the logical choice if we could get our ducks in a row.

“We [first] need to get competitiveness, predictability and then get the right car and the right business case. We are continuously hopeful about South Africa [as] it’s very capable and a very competitive base from which to produce cars for the African continent. And believe me, I continuously have this ambition, so it’s not done, it’s not lost,” he told Engineering News Online in a telephone interview on Thursday.

While acknowledging that government’s automotive manufacturing incentive scheme was attractive to the group, he noted that it could not compensate for an unpredictable industrial and legislative environment.

“Government incentives always help, obviously. This being said, they should not be a band-aid on a broken system. Governments come and go, and when we do a plant, or we do a car, it’s [an investment] of over 20 years, so I think there needs to be a common understanding.

“I think what we need, all of us, as industrial participants, government and stakeholders, is to make sure that we’re backing those government incentives with a solid competitiveness base [comprising] technology, investment, flexibility, costs and predictability,” he commented, adding that South Africa should continue to look northwards to the “amazing opportunity” offered by an emerging middle class of some two-billion people.

Datsun – an offshoot of the global Nissan brand– re-entered the South African market at the end of last year with the launch of the India-manufactured Go model, which aimed to secure the largest slice of the first-time car buyer market.

Cobee outlined on Thursday that the company had gone some way towards doing just that, having captured between 27% and 34% of monthly A-segment car sales, and was now investigating the feasibility of adding a second model to its South African portfolio.

“We know that the customer expectation [for Datsun in South Africa] is broader than only one car, so we’re always looking for opportunities to enhance the line.

“We’re listening to our [local] dealer partners around how the Datsun brand is received, and where should we go from here… as our ambition is more than the current segment,” he said.

The 2014 entry of the five-door, 1.2l hatchback was not, however, without its challenges.

Shortly after it landed on South African shores, the vehicle came under fire for not offering basic standard features, such as airbags or an antilock braking system, and for “collapsing” during a 64 km/h crash test conducted by the Global New Car Assessment Programme’s Indian division.

A solemn Cobee told Engineering News Online, however, that the subject of safety in South Africa was “broad” and remained paramount to any participant in the car industry, but should be seen within a larger context.

“Safety is a very broad subject, starting with driver skills and continuing with the ability to identify, analyse and react to a situation. It’s important that we realise that it's a multiparty, never-ending road to reduce the risk on South Africa roads.

“We will continue evolving…the Go’s braking distance is 20 m less than most of its competitors, and that’s a good way to avoid a crash. We continuously work on the last chapter of mitigation, and [as such] are going to introduce an airbag [on Go models] from July,” he noted.