The South African Automotive Industry Essay

The South African Automotive Industry Essay

Length: 1432 words (4.1 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Much emphasis has been placed on globalization in the automotive industry as a result of the rapid increase in automotive exports. The role of government somewhat distinguishes the automotive industry from other industrial sectors, by means of policy implementation steering its development(Lamprecht 2009:7).The assist of government through the motor industry development program(MIDP),first established in 1995,has acted as a driving force in the promoting of competitiveness and export expansion.The MIDP provided an effective platform for communication and co-operation for all of the relevant stakeholders to interact on automotive issues.The participants in the automotive industry include government,labour and business(Department of Trade and Industry(DTI) 2004).It should be noted that the automotive production development program(APDP) has replaced the MIDP.
Since the inception (ADPD) in 01 January 2013,the South African automotive industry entered a period of volume-driven production support.Kehbila ,Ertel and Brent(2009:310) asserted that the industry is the prevalent manufacturing sector in South Africa.
SUPPLY CHAIN CHALLENGES IN THE SOUTH AFRICAN AUTOMOTIVE INDUSTRY
The automotive industry is critical to the South African economy and/or if figuratively put,the heartbeat of the South African economy. As the industry is big in its magnitude,the challenges faced are also great and vast even somewhat complex if critically analysed.In a global context, vast number of occurrences in the automotive industry encounters a large number of challenges and setbacks.Some predicaments are of OEM’s trying to diminish production and reduce manufacturing costs.They are required to enhance quality, improve styling, escalating organizational e...


... middle of paper ...


...dustry gains by the linkage of it and supply chain management(being supply chain led) as more collaborative approach is provided,knowing no boundaries across firms,including various parties in the supply chain that contribute significantly to improved product quality,shorter lead times,highly responsive supply chain,at lower cost and with increased customer satisfaction levels,and by so doing reveals the significance of the automotive industry.The importance of the automotive industry is largely due to the impact it has on the economy of a country.In terms of South Africa the automotive industry is one of the most influential in terms of its contribution towards of South Africa’s GDP, contributing 6%,accounting for approximately 12% of South Africa’s manufacturing exports, making it an all Important factor in the economy.In 2010,271 000 vehicles were exported.


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

South African Automotive Industry Essay

- FACULTY OF INFORMATION AND COMMUNICATION TECHNOLOGY Dept. of Informatics   Table of Contents 1. INTRODUCTION 3 2. BACKGROUND 3 3. PROBLEM STATEMENT 3 4. PURPOSE OF STUDY 4 5. RESEARCH OBJECTIVES 4 6. RESEARCH METHODOLOGY 4 5.1. Participants 5 5.2. Data Gathering Instruments 5 Literature Review 5 5.2.1. Questionnaire 5 5.2.2. Interviews 6 7. CONCLUSION 6 8. CHAPTER OUTLINE 6 BIBLIOGRAPHY 7   Growth of Information Technology in the South African Automotive Industry 1. INTRODUCTION 'A successful automotive industry is often seen as a symbol of economic success and as a sign of mastery of modern technologies' (TISA (Trade and Investment South Africa), 2003)....   [tags: Growth of Information Technology, Communication]

Powerful Essays
1964 words (5.6 pages)

Symbol of Success is Auto Industry in South Africa Essay

- Introduction A successful automotive industry is often seen as a symbol of the economic success of a country and the automotive industry plays a key part in the economic well-being of South Africa’ South Africa has its own original equipment manufacturers (OEMs) such as BMW, Nissan, Ford, Volkswagen, Daimler-Chrysler/Mercedes, General Motors and Toyota and automotive components manufactures (ACMs), which are located in three of the nine provinces in south Africa (Naude, 2009:10). An important and most efficient tool that is used by the South African automotive industry is buyer-supplier collaboration which is aligned with the objective of this assignment to identify and discuss the factors...   [tags: manufacturing, economy, suppliers]

Powerful Essays
3405 words (9.7 pages)

Factors that Caused the Demographic and Economic Decline of Detroit in Regards to the Marxist Theory

- In 2013, Americans witnessed a slowly sinking ship finally submerge. Once a bustling urban center rife with economic prosperity, the city of Detroit, Michigan filed for the largest municipal bankruptcy case in U.S history on July 18, 2013 (Fletcher, 2013). Over recent decades, Detroit has been the victim of both economic and demographic decay. To put the magnitude of the city’s desolation in perspective, during the middle of the twentieth century, the city’s population was approximately 1,850,000, making it, at the time, the fifth most populous city in the nation....   [tags: racial conflict, automotive industry, Karl Marx]

Powerful Essays
1866 words (5.3 pages)

The United States Of The Automotive Industry Essay

- When it comes to the automotive industry, the United States of America was at the top. It reigned supreme with the biggest percentages of sales coming from the “Big Three” car companies: General Motors (GM), Ford, and Chrysler, with the smaller percentages of sales coming from other brand names from different countries. Today, moreover, is a different story. According to CBS, “market shares are falling for all three companies as follows: General Motors: 28.2% to 17.6%, Ford: 24.1% to 14.7% and Chrysler: 15.7% to 12.7%”....   [tags: Automotive industry, General Motors]

Powerful Essays
953 words (2.7 pages)

The Automotive Industry Essay

- The automotive industry has been having a hard time catching a break the past few years. With bankruptcies, major recalls on some makes and models, and people’s opinions fluctuating on whether or not they should trade in their gas guzzlers for a more gas efficient model – this all takes its toll on the ability of the company to recover from losses. Add in the environmental challenges that car makers in America must conquer, and it can seem overwhelming for even the most experienced industry giants....   [tags: Automotive industry, Renault, Automobile, Porsche]

Powerful Essays
1067 words (3 pages)

The Economic Climate Of The Automotive Industry Essay

- Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. An oligopoly, the auto industry is highly dependent on strategic decision making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition and substitutes are seemingly leading factors in shifts that face the current industry in the near future; as well as political changes – locally and abroad. With the upcoming Presidential election, there is a very real possibility of big political changes, as well as, some major changes to international trade policies facing the American Automotive Companies....   [tags: Automotive industry, General Motors, Automobile]

Powerful Essays
1480 words (4.2 pages)

Essay on Global Competition Of The Automotive Industry

- • Global competition in the industry Global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovation and adopting process and product improvements. The automotive industry is one to the largest and most important industries in the world....   [tags: Automobile, Automotive industry, General Motors]

Powerful Essays
879 words (2.5 pages)

The Crisis Of The Automotive Industry Essay

- A man walks through his door and sits down at scuffed wooden table with his wife. As they sift through a mound of bills for the month the man tells his wife that he has been laid off without pay from his automotive job. Already in rough times, with money already an issue, the man must find a way to provide for his family and not have the house fall into foreclosure. The automotive industry in America controlled our economy and kept it running for many years. High gas prices ruined the industry and crippled our economy....   [tags: Automotive industry, General Motors, Automobile]

Powerful Essays
2468 words (7.1 pages)

The Automotive Industry Crisis Of 2008-2010 Essay

- Fueled by the 2008 recession, the automotive industry suffered a crisis that hurt the United States’ national economy. Lead Up to the Crisis The automotive industry crisis of 2008–2010 was a part of a global financial downturn. General Motors, Ford, and Chrysler, also referred to as the United States Big Three automakers, had limited access to offshore production, unlike their foreign equivalents. The New York Times wrote, “For the most part, the so-called auto transplants – foreign-owned car companies with major operations in the United States – have deep pockets and ample credit, and they are not facing potential bankruptcy like General Motors and Chrysler." Because of the rise in gas pri...   [tags: General Motors, Automotive industry, Chrysler]

Powerful Essays
1083 words (3.1 pages)

The Issues Affecting The Automotive Industry Essay

- This is an interesting one for me to cover; I have never really had any major interest in cars, and by extension the automotive industry. But let’s dig into it anyways and see if I can accurately sum up some of the issues affecting the industry. First off let’s start with the technological advances that have happened recently. First off we have something that would have been a pipe dream five years ago, Wi-Fi Connection in a car…While not anywhere near a location that offers Wi-Fi. In other words, the vehicle itself is what generates the Wi-Fi connection....   [tags: Automotive industry, Automobile, Pollution, Radar]

Powerful Essays
980 words (2.8 pages)