Investment into the Eastern Cape’s motor industry will be given a boost by a decision to extend the Motor Industry Development Plan (MIDP) to 2002. The MIDP provides incentives to motor companies to promote exports of components and vehicles from South Africa. The extension of the MIDP could prompt manufacturers to consider making new models in South Africa, says National association of automotive component and allied manufacturers (Naacam) executive director Clive Williams. The department of trade and industry last weekend unveiled the details of the extension of the MIDP to 2012 and it “came at an important time for the South African motor industry because the global vehicle market was expected to slow down” in the near future, Williams was quoted as “Providing this detail was seen as a way of getting international vehicle manufacturers to consider making new models of vehicles in this country”. He added that during the global slowdown, which was expected to last five to seven years, vehicle manufacturers would be under pressure to cut costs. Global vehicle manufacturers could, during the time of the slowdown, decide to cut these costs in non-core countries like South Africa, making the extension of the MIDP essential to the industry, the Naacam executive director added.