Topic > The South African Automotive Industry - 1432

Much emphasis has been placed on the globalization of the automotive industry as a result of the rapid increase in automotive exports. The role of government distinguishes the automotive industry in some ways from other industrial sectors, through the implementation of policies that guide its development (Lamprecht 2009:7). Government support through the Automotive Industry Development Program (MIDP), first established in 1995, has acted as a driving force in promoting competitiveness and export expansion. The MIDP has provided an effective platform for communication and cooperation for all stakeholders to interact on automotive issues. Participants in the automotive industry include government, workers and business ( Department of Trade and Industry (DTI) 2004). It should be noted that the Automotive Production Development Program (APDP) replaced the MIDP. Since inception (ADPD) on 1 January 2013, the South African automotive industry has entered a period of volume production support. Kehbila, Ertel and Brent (2009:310) stated that industry is the prevalent manufacturing sector in South Africa. SUPPLY CHAIN ​​CHALLENGES IN THE SOUTH AFRICAN AUTOMOTIVE INDUSTRY The automotive industry is critical to the South African economy and/or if figuratively speaking, the heartbeat of the South African economy. Since the sector is large in size, the challenges faced are also large and broad, even quite complex when analyzed critically. In a global context, a large number of events in the automotive industry encounter a large number of challenges and setbacks. Some difficult situations are of great importance OEMs are trying to decrease production and reduce production costs. They are required to improve the quality, improve the style, intensify the organization and...... middle of the paper ...... the industry gains by connecting it and managing the supply chain ( be guided from the supply chain) as a more collaborative approach is provided, without knowing boundaries between companies, including various parts of the supply chain which significantly contribute to improving product quality, shorter delivery times, highly responsive, at lower costs and with higher customer satisfaction levels, and in doing so reveals the importance of the automotive industry. The importance of the automotive industry is largely due to the impact it has on a country's economy. In terms of South Africa, the automotive industry is one of the most influential in terms of its contribution to South Africa's GDP, contributing 6%, accounting for approximately 12% of South Africa's manufacturing exports, making it a very important factor in economy. In 2010, 271,000 vehicles were exported.