Trade delegation which included MBSA, the East London IDZ and dti looks to Germany for potential investors

A delegation from Mercedes-Benz South Africa (MBSA), the East London Industrial Development Zone, and the Department of Trade and Industry (dti), including Trade and Industry Minister Rob Davies, spent last week in Germany in an attempt to lure component suppliers to South Africa for the production of the new C-Class model, starting in 2014.

More suppliers setting up shop in South Africa would mean a higher local parts content on the new C-Class model, to be produced at MBSA's East London plant for the local and export markets, as was the case with the current model.

Local content on the current model is 40% by value.

Outgoing MBSA CEO Dr Hansgeorg Niefer said on Tuesday that South Africans had to realise that the picture painted of their country by the international press in South Africa was "more negative than positive".

 "We wanted to paint a more realistic picture of the country."

Niefer said the aim of the delegation was to encourage component suppliers to set up shop in South Africa, with the goal to supply MBSA, as well as other Daimler plants and/or larger export markets.

The delegation also included a number of current component suppliers to MBSA, relaying their experiences of operating in South Africa.

"The feedback was very positive," said MBSA manufacturing vice-president Rainer Ruess.

 "Around 45 suppliers attended. We chose those we thought would be interested in investing in South Africa. We had some high-ranking attendees, such as MDs and CEOs."

Parts suppliers included body part, exhaust, cockpit, seat and bumper producers.

Ruess only expected to receive some feedback on possible investments in around three to four months.

"Every supplier we get into South Africa is a bonus, especially as it reduces logistics costs."

Ruess said that MBSA had realised the need for a road show once it became clear that German component suppliers were not aware of the investment schemes, and the scope of these schemes, that existed in South Africa.

"When we realised this, we knew we had to do something. Suppliers are only thinking China at the moment, and that is all they see."