The DaimlerChrysler automotive plant in East London is at the centre of addressing South Africa's public transport needs with the vehicle giant delivering 38 of an order of 126 buses for Metrobus at a launch in Johannesburg on Tuesday, where it pledged to expand its bus assembly team to meet future demand.

DaimlerChrysler imported the chassis - frame and support structure - for the 38 buses delivered on Tuesday but said its East London plant would now assemble these support structures for the balance of the order and fit them with local parts.

"A plus point was the fact that we could bring costs down and create new jobs for South Africans by building a dedicated bus assembly line in East London," said DaimlerChrysler project manager for buses Pete Koopman.

The company started its bus assembly division in January through empowerment partner Ikhwezi Trucktec.

It has already had to employ an extra 20 people bringing its staff compliment to about 165 to meet surging demand and was on track to reach its target of assembling 90 buses by year end. It was also focusing on skills transfer by training technicians in Johannesburg to service the new buses.

DaimlerChrysler said the Johannesburg metro had indicated that it wanted 300 new buses and there was a "strong likelihood" that it would sell more buses to other metros.

"One reason for starting the East London assembly plant was that sales at DaimlerChrysler South Africa increased from 140 units in 2004 to 190 in 2005. This year, we expect to sell more than 300 units. With the local production we are more flexible, we can improve our production and we create new jobs in South Africa," said DaimlerChrysler executive vice-president Wolfgang Diez.

The increasing sales come at a time when public transport inefficiencies are under scrutiny in the run up to the 2010 World Cup.

Traffic congestion in South Africa’s big cities have become the norm and critics have questioned the country’s ability to transport visitors during the tournament.

"Buses are South Africa's solution to the lack of public transport and dedicated bus lanes will be utopia in 2010," said DaimlerChrysler marketing manager Harry Teifel.

DaimlerChrysler is not alone in expanding its heavy commercial assembly to meet growing needs in South Africa. In August, Volkswagen announced its plans to introduce truck and bus products in the country within the next year.