German car maker BMW announced recently that it will invest a further R6-billion in its Rosslyn factory in Pretoria where it plans on assembling the next generation BMW X3 SUV.
The planned investment is one of the biggest in the local automative sector and is a major boost for South Africa as an investment destination. According to the SABC, the German manufacturer says that it wants to increase the level of content that it produces in South Africa.
According to BMW, R3bn will be invested in upgrading its Rosslyn plant with state-of-the-art technology to produce the new X3 model, which is currently being manufactured in the US. An additional R3bn will go towards suppliers, launch costs and for the training of associates.
BMW’s planned investment comes in the wake of the Department of Trade and Industry’s decision to extend its incentive programme in the vehicle manufacturing sector beyond 2020. The government has also dropped the production threshold to qualify for benefits to manufacture 10 000 vehicles a year in 2016.
This makes it easier for new entrants to start manufacturing vehicles in South Africa.