The South African automotive industry would only be able to create and sustain more jobs if it could achieve a vision of producing one-million cars a year, the National Association of Automobile and Allied Manufacturers (Naacam) reported on Monday.

This was one of the main reasons that Naacam was supporting the second South African Automotive Week (Saaw), an industry showcase and think-tank that was being held in Port Elizabeth during October this year.

Naacam executive director Roger Pitot said that it would not be possible to meet an industry target of 70% local content without much higher production volumes. Hitting the one-million vehicle-a-year mark, would increase employment levels in the auto industry by between 50% and 60%, he added.

Saaw chairperson Alfred da Costa, who has interests in component manufacturing, said Saaw 2009 would be a mix of a four-day industry expo, a "Navigating the Storm: A roadmap to Vision 2020" conference and networking opportunities.

International interest from manufacturers in China, India, Taiwan and Holland showed that the African market was seen as being a potential growth area by the world’s automotive industry, he said. Da Costa urged local component manufacturers to turn this to their advantage by entering into licence agreements with foreign suppliers wanting to enter the African and local South African markets.

Over the next two years, the component industry would be characterised by mergers, takeovers and a consolidation of suppliers by original equipment manufacturers, the Saaw said in a statement on Monday.

The local companies already had the skills, facilities and infrastructure in place, and would benefit from technology.

"Original equipment manufacturers demand that local suppliers have international licensing agreements in place. Therefore, having international links in place is not a choice but a necessity," said Da Costa.

Saaw is the only industry event supported by both Naacam and the National Association of Automobile Manufacturers of South Africa, together with the Automotive Industry Development Centre.

SOURCE : http://www.engineeringnews.co.za/article/million-cars-target-key-to-automotive-job-creation-naacam-2009-05-25