Newsroom
Search:

News Article - Automotive
DCSA plans to maximise local content
Posted on: Friday, 06 September 2002. Article source: Eastern Cape Business News
DAIMLERCHRYSLER SA (DCSA) is aiming to source 80 per cent of the parts on its next generation Mercedes-Benz C-Class from local suppliers, according to the East London-based manufacturer’s site leader and management board member of manufacturing, Hansgeorg Niefer. About 40 per cent of the current C-Class's content is sourced from South African companies. If the local content of its replacement range were boosted to 80 per cent, it would not only reduce DCSA’s production costs, but optimise benefits that could be derived through the government’s Motor Industry Development Programme, Niefer told the Business Day newspaper. The plans to nearly double local content will boost the growing components industry in the Eastern Cape, which serves both the local and international markets. Niefer did not say when DCSA planned to start production of the new range. However, he said that the C-Class, which was introduced in South Africa in 2000, had a lifecycle of eight to 10 years. Although a number of projects to increase the local content in the C-Class were still being considered, Niefer added that the remaining production life of the range was too short to raise local content much beyond the current 40 per cent. According to DaimlerChrysler SA, its East London plant is running at full capacity and producing 204 units each day. If demand increased further, a third shift could be introduced, or an additional production day on Saturdays, a factory spokesman said. The company expected to boost C-Class unit sales to 47 700, a 23 per cent rise over sales in 2001, Mercedes-Benz passenger cars manager Dan Moeletsi said.
Article Tags: No tags defined
Podcast













