Nissan plans new pick-up model in SA
Car maker to raise production
NISSAN Motor plans to build a new model of pick-up at its South African plant starting in 2018 and will increase production from the facility as the Japanese car maker seeks to capitalise on future demand for new vehicles on the continent.
Nissan saw output from its factory in Rosslyn, north of Pretoria, rising to as many as 80 000 vehicles a year as the new model came online, compared with about 40 000 now, Nissan South Africa managing director Mike Whitfield said this week.
The firm was in talks with suppliers about the additional model and would probably announce details of the plans early next year, he said.
“Like any investment decision there are a number of key milestones, but we are moving forward,” Whitfield said. “It would be a new product with a lot more potential in Africa.”
South Africa uses government incentives to attract firms including Nissan, Ford Motor and Volkswagen to set up and reinvest in the country.
Naamsa
The government programme would be extended beyond the current timeframe of 2020, while the production threshold to qualify for benefits would fall to 10 000 vehicles a year next year, the Department of Trade and Industry said at the weekend.
The number of vehicles produced in South Africa is projected to increase to 622 000 this year, according to the National Association of Automobile Manufacturers of SA (Naamsa).
There were 277 491 cars produced in South Africa last year, of which 55 percent were exported, according to Naamsa.
The percentage of exports would probably rise to 68 percent this year, it said.
“The fact that they’ve clearly stated there will be a policy after 2020, that they will work with the industry in 2016 to formulate the next phase of the auto policy, is critical,” Whitfield said. “You wouldn’t be able to make investment decisions” otherwise, he added.
While the lower production threshold made it easier for new entrants to start making vehicles in South Africa, scale was still a major driver of profitability, Whitfield said.
Nissan produces the NP200 half-ton pick-up and NP300 oneton Hardbody at its Rosslyn assembly plant. The company planned to eventually reach the factory’s full capacity of about 100 000 vehicles a year on a two-shift basis, Whitfield said. – Bloomberg