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Modelling South Africa's incentives under the Motor Industry Development ProgrammeKaggwa, Martin. January 2009 (has links)
Thesis (Ph.D.(Technology Management))--University of Pretoria, 2008. / Summaries in Afrikaans and English. Includes bibliographical references.
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The response of an original equipment manufacturer to the Motor Industry Development Programme : a case study /Franse, Ricardo. January 2006 (has links)
Thesis (M.B.A. (Investec Business School))--Rhodes University, 2006. / A dissertation submitted in partial fulfilment of the requirements of the degree of Masters of Business Administration.
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A critical analysis of the South African automotive industry and government incentive policyGaskin, Sean January 2010 (has links)
The automotive industry in South Africa exists in its current state due to the developmental programmes created by the South African government. During the next three years the government’s main development policy for the automotive industry will change from the Motor Industry Development Programme (MIDP) to the Automotive Production and Development Programme (APDP). As a result of this change there were feelings of uncertainty experienced across the domestic automotive industry during the APDP’s design and the period leading up to its launch, more or less years 2008 to 2010. Also present is the fear that the industry would collapse when faced with global competition should this change not fully comprehend all aspects of South Africa’s automotive industry. The research problem addressed in this study was to determine the effect on the sector’s competiveness in light of the impending change in governmental development programmes. This was accurately explained and expressed clearly while sub problems were identified from areas in the main problem that required further analysis due to their criticality or lack of clarity. A comprehensive literature review was executed to understand the nature and extent of the South African automotive industry, the Motor Industry Development Programme and the Automotive Production and Development Programme. A primary research instrument was constructed, in the form of a questionnaire, to test specific themes exposed during the literature review which can influence the sector’s competitive advantage. This questionnaire was distributed with the assistance of industry representative bodies NAAMSA (National Association of Automobile Manufacturers of South Africa, the domestic de facto representative body) and NAACAM (National Association of Automotive Component and Allied Manufacturers, a component manufacturers’ representative body), to an even spread of respondents representative of the senior management and executives of automotive companies in South Africa. From the results obtained from the sample group, it seemed that there was consensus on many issues regarding the current structure of the South African automotive industry. Specifically, the profitability of vehicle assemblers and component manufacturers is heavily iii influenced by the incentives offered under the MIDP and the industry is not viable without them. The respondents were virtually unanimous in indicating that there is a need for some form of incentive programme and were positive about the effect the MIDP has had thus far on the automotive industry of South Africa, particularly the effect on the structure, focus and encouraging a reduction in complexity. The research found that it is common practice for OEMs to include the import duty on vehicles imported for domestic consumption even though this duty will be paid with the use of import-duty rebate credit certificates (IRCCs), which are provided to those vehicle assemblers who are net exporters of vehicles. Looking to the future, it emerged that the APDP will have a similar, positive effect on the domestic automotive industry when compared to the MIDP, but the effect will be experienced in a more aggressive manner. Companies will be encouraged by the new development programme to more aggressively improve aspects such as restructuring, rationalising, reducing model proliferation and improving low scale economies for example. Also the APDP will encourage OEMs to increase plant production volumes and ensure that reasonable scale economies are present to develop a domestic component supply industry to a degree. However, the volumes will be insufficient to create a world-class supplier industry. As a result automotive companies will have to be more aggressive in their adoption of more automated production processes and through Automotive Investment Scheme capital investment will increase in both vehicle assemblers and component manufacturers. Component manufacturers indicated that they would invest more in the coming years under the APDP than previously while vehicle assemblers indicated that their investment levels will remain as before. While this is good for the industry, labour is somewhat left out of this: considering the APDP’s focus on increased volumes and capital investments automotive companies are not incentivised to make use of labour-absorbing production processes. The study also found that there is still a need for tariff protection and that the domestic industry would collapse in the face of global competition. The research found that the APDP was compliant with South Africa’s commitments to the World Trade Organisation. Finally, the Department of Trade and Industry’s goal of producing 1.2 million vehicles per annum by 2020 was revealed to be unrealistic and unreachable.
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Analysis of the Motor Industry Development Programme (MIDP) as a promotional tool for the South African automotive industry in the global automotive environmentLamprecht, Norman 30 June 2006 (has links)
The Motor Industry Development Programme (MIDP) was implemented on 1 September 1995 in the context of the country's political and economic liberalisation and the major structural shift in government policy and the trade regime. In an intensely competitive global environment, the strategies of a few dominant motor vehicle manufacturers, mainly operating from the Triad regions of North America, Europe and Japan, impact significantly on the developments of the global automotive industry.
Over the past decade the small, highly protected and inwardly focused South African automotive industry has become fully integrated in the global strategies of foreign parent companies. As South Africa's leading manufacturing sector, the automotive sector is contributing significantly to the country's economy in terms of exports, investment, employment and the gross domestic product.
The objective of the study was to establish and measure the relevance and value of the MIDP as a promotional tool in the global automotive environment by capturing the responses and perceptions of direct automotive industry exporters and stakeholders for
* the South African automotive industry in general, and
* the companies forming part of the empirical survey.
To satisfy the objectives of the study, the research methodology incorporated an extensive primary and secondary research phase (qualitative and quantitative). A structured empirical survey was used to collect the primary data. The survey data were captured and processed by the Bureau for Market Research (BMR), Unisa.
The main findings of the study are that:
* The promotional relevance and value of the MIDP as a promotional tool is embedded in the programme's ability to trigger interest in the South African automotive industry, to generate business and to attract investments.
* The MIDP is successful in contributing to the automotive sector's international competitiveness and is therefore a very important promotional tool for convincing foreign parent companies to consider South Africa as an investment destination.
* The South African automotive industry would not be able to cope with global competition without the MIDP.
* Different factors impact on the business operations of the South African automotive industry in general and the specific company in particular and the factors are viewed differently by the selected groups based on their demographic details.
The process of trade liberalisation is forcing many South African companies to encounter both intensified competition and new forms of competition. The South African government's target of a 6 percent economic growth rate by 2010 will largely depend on the ongoing successes achieved in priority sectors such as the domestic automotive sector. / Business Management / M. Comm. (Business Management)
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The impact of the Motor Industry Development Programme (MIDP) on the export strategies of the South African light motor vehicle manufacturers (1995-2008)Lamprecht, Norman 11 1900 (has links)
Role-players in the South African automotive industry have responded positively to the Motor Industry Development Programme (MIDP) policy regime. Since 1995, South African light motor vehicle manufacturers (original equipment manufacturers – OEMs) have become fully integrated into the global networks of their foreign parent companies. As South Africa‟s leading manufacturing sector, the increasing importance of the automotive sector is reflected in its exports, investments and contribution to the country‟s gross domestic product.
The objective of this study was to analyse the impact of the MIDP on the export strategies of the South African light motor vehicle manufacturers (1995–2008). The main findings of the research are that, since 1995, the MIDP has been the primary factor impacting on the export strategies of South African OEMs. Without the programme, the industry would not have been able to cope with global competition. It is important to note that without the MIDP there would have been no significant growth in exports from South Africa.
The research found that the country‟s trade arrangements with the EU and the USA have enhanced the impact of the MIDP. It was also found that, given South Africa‟s distance to foreign markets, the most important constraint when accessing these markets is the cost of logistics. In addition, the most important determinant of foreign-market pricing when setting the export price, aligned with the influence of the OEM parent companies, is costs relating to manufacturing, transportation and marketing. The role played by the MIDP in sourcing decisions is the most important factor that has contributed to an increase in light vehicle exports. Furthermore, the perceived level of influence when determining new export destinations would seem to be higher for the US-based and the Japanese-based OEMs than the European-based OEMs.
The new Automotive Production Development Programme (APDP) (to be introduced in 2013), which aims to double vehicle production to 1,2 million units by 2020, will reflect a quantum leap in terms of processes, technologies and the scale on which the domestic industry currently operates. In order for the South African automotive industry to achieve both its and government‟s objectives it will require priority attention. / Business Management / D. Comm. (Business Management))
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Analysis of the Motor Industry Development Programme (MIDP) as a promotional tool for the South African automotive industry in the global automotive environmentLamprecht, Norman 30 June 2006 (has links)
The Motor Industry Development Programme (MIDP) was implemented on 1 September 1995 in the context of the country's political and economic liberalisation and the major structural shift in government policy and the trade regime. In an intensely competitive global environment, the strategies of a few dominant motor vehicle manufacturers, mainly operating from the Triad regions of North America, Europe and Japan, impact significantly on the developments of the global automotive industry.
Over the past decade the small, highly protected and inwardly focused South African automotive industry has become fully integrated in the global strategies of foreign parent companies. As South Africa's leading manufacturing sector, the automotive sector is contributing significantly to the country's economy in terms of exports, investment, employment and the gross domestic product.
The objective of the study was to establish and measure the relevance and value of the MIDP as a promotional tool in the global automotive environment by capturing the responses and perceptions of direct automotive industry exporters and stakeholders for
* the South African automotive industry in general, and
* the companies forming part of the empirical survey.
To satisfy the objectives of the study, the research methodology incorporated an extensive primary and secondary research phase (qualitative and quantitative). A structured empirical survey was used to collect the primary data. The survey data were captured and processed by the Bureau for Market Research (BMR), Unisa.
The main findings of the study are that:
* The promotional relevance and value of the MIDP as a promotional tool is embedded in the programme's ability to trigger interest in the South African automotive industry, to generate business and to attract investments.
* The MIDP is successful in contributing to the automotive sector's international competitiveness and is therefore a very important promotional tool for convincing foreign parent companies to consider South Africa as an investment destination.
* The South African automotive industry would not be able to cope with global competition without the MIDP.
* Different factors impact on the business operations of the South African automotive industry in general and the specific company in particular and the factors are viewed differently by the selected groups based on their demographic details.
The process of trade liberalisation is forcing many South African companies to encounter both intensified competition and new forms of competition. The South African government's target of a 6 percent economic growth rate by 2010 will largely depend on the ongoing successes achieved in priority sectors such as the domestic automotive sector. / Business Management / M. Comm. (Business Management)
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The impact of the Motor Industry Development Programme (MIDP) on the export strategies of the South African light motor vehicle manufacturers (1995-2008)Lamprecht, Norman 11 1900 (has links)
Role-players in the South African automotive industry have responded positively to the Motor Industry Development Programme (MIDP) policy regime. Since 1995, South African light motor vehicle manufacturers (original equipment manufacturers – OEMs) have become fully integrated into the global networks of their foreign parent companies. As South Africa‟s leading manufacturing sector, the increasing importance of the automotive sector is reflected in its exports, investments and contribution to the country‟s gross domestic product.
The objective of this study was to analyse the impact of the MIDP on the export strategies of the South African light motor vehicle manufacturers (1995–2008). The main findings of the research are that, since 1995, the MIDP has been the primary factor impacting on the export strategies of South African OEMs. Without the programme, the industry would not have been able to cope with global competition. It is important to note that without the MIDP there would have been no significant growth in exports from South Africa.
The research found that the country‟s trade arrangements with the EU and the USA have enhanced the impact of the MIDP. It was also found that, given South Africa‟s distance to foreign markets, the most important constraint when accessing these markets is the cost of logistics. In addition, the most important determinant of foreign-market pricing when setting the export price, aligned with the influence of the OEM parent companies, is costs relating to manufacturing, transportation and marketing. The role played by the MIDP in sourcing decisions is the most important factor that has contributed to an increase in light vehicle exports. Furthermore, the perceived level of influence when determining new export destinations would seem to be higher for the US-based and the Japanese-based OEMs than the European-based OEMs.
The new Automotive Production Development Programme (APDP) (to be introduced in 2013), which aims to double vehicle production to 1,2 million units by 2020, will reflect a quantum leap in terms of processes, technologies and the scale on which the domestic industry currently operates. In order for the South African automotive industry to achieve both its and government‟s objectives it will require priority attention. / Business Management / D. Comm. (Business Management))
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Impact of the motor industry development programme on the automotive component industry.Konar, Selvin. January 2012 (has links)
The focus of this study revolved around the impact of the Motor Industry Development Programme (MIDP) on the automotive component manufacturers in the greater Durban area. The research objectives were to determine whether the introduction of MIDP has contributed to an increase in throughput for the automotive component manufacturers, to determine whether the introduction of MIDP has led to increased employment levels within the automotive component manufacturing industry and lastly to determine whether MIDP has resulted in increased investment in the automotive component manufacturing industry in KwaZulu-Natal. This study analysed the data received from 30 respondents, who as a pre-requisite, were employed within the component manufacturing industry in KwaZulu-Natal. The population sample was attained through the use of the author’s supplier database at Smiths Manufacturing (Pty) Ltd, a tier 1 automotive component manufacturer to the original equipment manufacturers in South Africa. A self-completion questionnaire, which was quantitative in nature, was distributed to the participants and a two week data collection period was allotted. The collected data was analysed using SPSS statistical software, the results of which revealed that MIDP was of significant importance to automotive component manufacturers in KwaZulu-Natal. It further revealed that there was a direct relationship between employment, investment and throughput with the introduction of MIDP. The same findings were evident for similar programmes in India and China.It is recommended that a similar study be conducted in Gauteng and the Eastern Cape, which are the other automotive component manufacturing hubs in South Africa. Furthermore, MIDP will be replaced by the APDP during 2013, and it is recommended. / Thesis (MBA)-University of KwaZulu-Natal, Durban, 2012.
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Impact and implication of future mobility on the South African automotive industryMnyaka, Mtutuzeli Bennett Basil January 2013 (has links)
The South African Automotive industry has been one that has enjoyed the subsidies schemes like the Motor Industry Development Program (MIDP), and in the near future the Automotive Production Development Program (APDP). There are however different schools of thought when it comes to subsidies for an industry. One is that there should be no incentives when others are for the schemes, which one is best for the growing economy of a young democratic and highly unemployed nation? Looking at the next planned incentive scheme to be introduced to replace the MIDP, the APDP is it better than the MIDP? How are these schemes going to benefit the country in the future and will they exist for as long as we have the Auto industry in South Africa? The objective is to prompt those in political power and positions capable of influencing infrastructure changes to think long term when making decisions today that will affect future generations. Future generations should be able to benefit from future technologies of the day and not be hindered by the lack of improved and capable infrastructure.
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The response of an original equipment manufacturer to the Motor Industry Development Programme: a case studyFranse, Ricardo January 2006 (has links)
On the 21st September 1995, the government introduced the Motor Industry Development Programme (MIDP), in compliance with the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Deliberate efforts by the South African government were required to promote structural changes to the domestic motor industry by opening up the economy to international competition through a programme of tariff reduction and export promotion. The integration of the South African automotive industry into global markets would have been extremely difficult, if not impossible, without the MIDP and it would thus be safe to conclude that the economic performance of the researched would have been close to impossible if it was not for the MIDP. The MIDP, as an economic policy, has been embraced by the researched company as a "vehicle" to drive corporate goals in terms of value creation for all stakeholders. The research proposition that the MIDP as an economic policy has contributed to the economic performance of the researched company is examined. In this respect, Annual and Management Accounting reports were analyzed to determine the effect the MIDP has had on the researched company over the last ten years. In addition, two semi-structured interviews were also conducted with the Strategic Finance Planning executive and the Financial Controller of the company. The results show that the MIDP has had positive spin-offs for the researched company. The same results should be valid for the other original equipment manufacturers (OEMs) in the local automotive industry that have embraced the MIDP as a vehicle to create economic value added.
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