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Govt to protect car sector
Tue, 30 Jun 2009 12:00
Government viewed the vehicle manufacturing industry in South Africa as "strategic" and would continue supporting it, Trade and Industry Minister Rob Davies said on Tuesday.
Briefing the media at Parliament ahead of debate on his
department's budget vote in the National Assembly, he said
government also sought to influence the direction the auto sector
took.
Davies was responding to a question on why government was
continuing to support the motor industry given the trouble it was
experiencing in the face of falling demand for vehicles.
"I think that the auto industry has got some very, very
important linkages to other industrial sectors, and we need to
preserve that capacity," he said.
Sectors supplying goods to auto manufacturers included the
leather, steel and glass industries, and many engineering
industries.
"The auto industry is connected with many value chains in the
economy, so it's strategic... we need to preserve the existing
capacity.
"But our objectives, in terms of direction, are to emphasise the
more labour-absorbing, components-manufacturing industry, and
also... to take the automotive programme in the direction of heavy
and commercial vehicles.
"We're having a major public transport upgrade in this country.
We want to make sure that we are producing the vehicles that will
take people on bus rapid transit systems and so on.
"We want to make sure that the commercial vehicles... that an
increasing proportion of those are manufactured in South Africa.
"It's not just we're preserving something in its current form;
we want to influence its direction," Davies said.