In the early 1990s the South African automotive sector was regarded as ineffective, uncompetitive and dependent on heavy tariff protection for survival. The government’s policy support through the Motor Industry Development Programme lowered tariffs and provided strong support for exports, while the production incentives of the Automotive Production Development Programme reinforced the vision that the long-term development of the sector will best be served through considerable increases in production volumes and accelerated growth. The population consisted of the seven OEMs and the 110 First Tier Suppliers. The results indicate a difference in government support between the vulnerable and non-vulnerable suppliers. The government has shown its commitment to the future of the automotive industry by policy interventions such as the Motor Industry Development Programme and the Automotive Production Development Programme. The question arises as to what extent the government’s guarantees are keeping the domestic automotive manufacturing industry sustainable? The objective of this research was to investigate the relationship between government support and the sustainability of the South African automotive industry. The conclusion of the study is that the South African automotive industry and its suppliers would not be able to survive without continued government support. / Business Management / M. Com. (Business Management)

The South African leather industry has undergone a significant transformation since the 1990’s and this can be attributed primarily owing to two major factors that occurred. The first being trade liberalisation, which meant the fall of trade barriers, and the second being the Motor Industry Development Programme (MIDP), which was implemented in South Africa on 1 September 1995. The MIDP was implemented in the context of the country’s political and economic liberalisation, and the major structural shift in government policy and the trade regime. South Africa became much more globally integrated and the South African leather industry benefited because of this, as well as the incentives that was offered under the MIDP. Automotive exports of stitched leather seat parts responded positively to the incentives offered under the MIDP and stitched leather seat parts, as a component under the MIDP, became one of the best performing components being exported from South Africa. The MIDP had been terminated at the end of 2012 and is now being followed by government’s latest rendition of automotive policy, namely the Automotive Production and Development Programme (APDP). The APDP focuses on value addition, which pursues beneficiation of the country’s raw materials to the final stages, to ensure maximum benefit to the South African economy. The findings of the study entail that the South African leather industry is now in a vulnerable state because of the new automotive policy. This is mainly because the APDP does not provide the same level, or type, of incentives that the MIDP had provided to the industry. / Business Management / M. Com. (Business Management)