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Investimenti VW in Sud Africa [Lettura in inglese]
SA car industry is winning the investment war
'The production of top-quality products for the world market will go a long way towards demystifying Afro-pessimism'
Volkswagen Germany's decision to award major contracts to its SA operation is a vote of confidence in this country, writes Kuseni Dlamini
The R12-billion worth of contracts awarded to Volkswagen South Africa by its German parent is a resounding vote of confidence in South Africa as an investment location.Power source: Volkswagen SA's managing director, Andreas Tostmann, with Trade and Industry Minister Alec Erwin
It also is a tribute to the management of VWSA, which has proven that it is capable of producing top-quality cars and components for discerning consumers in Europe; and to the sound approach of the National Union of Metal Workers of South Africa (Numsa) on industrial relations and productivity issues.
It is Numsa's approach that has enabled VWSA to be such a success. The ordinary workers, in conjunction with their managers and supervisors, deserve praise for making South Africa competitive.
Technology is not an adequate source of sustainable competitive advantages; people are. A company is as good as its employees. Managers' role is to unlock the creative and productive energies of employees.
If managers are mediocre, their workers will be mediocre too. The SA auto industry has produced some of the leading lights in global managerial circles, such as Jurgen Schremp of DaimlerChrysler; and Jim Miller and Lewis Booth, both formerly of Ford SA.
Not least in importance are sound relations between government and business. The auto industry has led the way in this area without making headlines, quietly forging productive relations with the government.
This has seen the industry and the government speaking with one voice to auto industry investors in Detroit, Stuttgart, Toyota City and other parts of the world. Trade and Industry Minister Alec Erwin and local auto executives have stood shoulder-to-shoulder in selling South Africa.
This does not mean that there are no differences or points of disagreement between the industry and government. There are. But the big picture is that there is a shared vision and a tangible sense of common purpose in making South Africa a globally competitive location for the production of top-quality motor vehicles and components.
That is why success in the auto sector is becoming the norm rather than the exception. Other key local players - BMWSA, Toyota, DaimlerChrysler, Ford and most recently Delta - have done very well in integrating themselves into the global supply chains and the networks of their parent companies.
The local industry has led the way in terms of innovations around multi-year wage agreements, modern production techniques (such as just-in- time, total quality management and green areas) and, above all, in rewarding workers for the acquisition of skills.
Auto industry workers in Uitenhage, Rosslyn, East London and Prospecton are more passionate about learning and growing than their counterparts in Detroit, Stuttgart or Cowley. This is because they are rewarded through promotion and monetary incentives to improve their skills.Auto industry executives such as Christoph Kopke of DaimlerChrysler, Johan van Zyl of Toyota SA, Ian Robertson of BMW and Andreas Tostmann of VWSA have been pioneers in enhancing the global competitiveness of their operations in the cut-throat global auto industry.Se lo dicono loro...
It is encouraging that the prophets of doom who predicted the death of the South African auto industry 10 years ago have been proven wrong as the industry grew from weakness to relative strength. The industry is a good case study and an example of how South Africa can be globally competitive and remain African at the same time.
The production of top-quality products such as cars, computers and electronic goods for the world market will go a long way towards demystifying the notion of Afro-pessimism.
After the Second World War, Japan was despised by the West and the country's goods were frowned upon and considered inferior. Years of dedication and focus changed that. People in London, New York, Berlin and elsewhere happily drive Japanese cars these days without worrying that the wheels or doors might fall off.
South African car manufacturers had to deal with similar prejudices when they began penetrating the export market 10 years ago. It is encouraging that Japanese, US, British and Australian drivers today drive cars made by South Africans without worrying that the engines or exhausts might fall apart.
Top-quality goods are good ambassadors for any country. The US dominates our lives through the goods produced and sold by US companies to the rest of the world. Even if you hate them, you can't spend a day of your life without using something designed or pioneered by Americans. Their national identity and pride is grounded in a record of excellence.
More can and must be done to keep the auto industry on track and to position South Africa as a leading producer of world-class cars. What has happened thus far is only the beginning. South Africa remains a marginal auto industry player in the global scheme of things.
Last year South Africa produced 421 335 motor vehicles out of a global total of 60 658 136. This accounts for only 0.69% of global production; a 0.1% increase from 2002, when the figure was 0.68%. Things can only get better.
The success achieved by the local auto industry over the past 10 years is also a product of good management and good industrial relations. The continued success of the industry will require more of this. Without industrial relations stability, no car manufacturer can fulfil its contractual obligations in terms of delivery on time, quantity and quality.
What does the VWSA contract tell us? First, that the war to attract and retain foreign direct investment - the greatest challenge facing all countries in the 21st century - is being won by South Africa; at least in the auto manufacturing sector.
Just as companies compete for market share, countries compete fiercely for investments. There is a strong correlation between foreign direct investment inflows and growth and development. The global automobile industry is very competitive. VWSA had to compete with VW plants in Latin America, Asia, North America and Europe.
Secondly, the choice of Uitenhage is a vote of confidence in South Africa as a whole. South Africa has in place sound macro-economic fundamentals, which have won the hearts and minds of foreign investors and rating agencies. South Africa has taken its rightful place as a competitive location for the making of top-quality automobiles.
Thirdly, it tells us that the journey begun by the industry and the government when they launched the Motor Industry Development Programme is paved not just with good intentions but also with splendid success.
Other industries have much to learn from the auto industry. Erwin and President Thabo Mbeki, through his International Investment Council, have worked very hard to win over key international investors.
Furthermore, the timing of the VWSA announcement is very significant, coming as it does two weeks before a general election. When it is election time, investors normally adopt a wait-and-see attitude to minimise exposure to the risks inherent in regime change. The fact that an election is not a cause for worry for @ a key investor such as VW AG indicates that South Africa is a reputable and world-class location for such investments.
It indicates that the international investor community is increasingly viewing South Africa as a fully-fledged democracy with a good reputation as an investment location of choice.
Source: http://www.suntimes.co.za
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