Car makers mull parts-sharing plan
The motor sector could fall foul of competition laws if it attempts to design common components for multiple vehicle brands.
But if this hurdle is cleared, such a strategy could bring new investment to SA, Toyota SA president Andrew Kirby believes.
Vehicle production numbers are not enough to attract wholesale localisation of the parts that go into Sa-made cars and pickups.
The entire production of the local industry, across seven assembly plants and more than 10 product ranges, is less than that of a single plant in some countries.
That is why nearly 60% of the average value of Sa-made cars and pickups comes from imported components.
The state’s automotive master plan wants to turn this around so that 60% will come from SA by 2035.
Besides attracting investment and creating jobs, this would cushion SA against global components shortages.
To achieve the economies of scale required to attract investment, the industry has tried to identify common parts that can be used by different brands but made by one supplier.
Among the thousands of components in each vehicle, items such as door handles and seat brackets could, in principle, be “commonised”.
These could be used both locally and for export to other plants around the world.
However, Kirby said concerns had been raised that motor companies could be accused of collaboration. The industry has fallen foul of competition laws before, and Kirby said it was talking to the Competition Commission to see what co-operation was allowed.
Common design would have to be approved not just by SA motor companies but also by their multinational parents.
SA assembly plants are all part of global production chains, so local commonisation would have implications beyond SA.
Then there is the problem of timing, Kirby said.
When vehicle makers introduce new ranges, components undergo radical changes.
Commonisation would be simple if companies changed models at the same time, but they do not.
“We all have different time frames when new models are introduced and they don’t always overlap,” said Kirby, speaking at the Auto Week conference at Kyalami.
The advent of electric vehicles could provide an opportunity, according to the government.
Trade, industry & competition minister Ebrahim Patel told the conference he was aiming to announce the state’s policy on incentivising local EV manufacture early in the new year.
Wholesale technology shifts do not come along very often, he said so there could well be localisation benefits.