Michele Arde


Key developments and Vision for the sector in the

Western Cape auto hub


WC Automotive Component

Manufacturers contribution to Industry

• Representing 11% of total employment

• 10% of gross value add

• 15 Automotive component manufactures

• (Source: Quantec) www.wcac.co.za

WCAC Background

• 2013 Western Cape Auto motive companies acknowledged, without collaboration the local industry would not be sustainable long-term

• Pro actively, 6 firms funded the formation of an Automotive cluster in an effort to tackle the various challenges of industry

• Western Cape government welcomed this move to foster local economic growth and has since provided co-funding for the cluster




To promote the sustainable growth and competitiveness of the Western

Cape automotive manufacturing sector


To promote the Western Cape automotive sector’s unique value proposition through establishing mutual competitive advantages


Increase supplier MVA in support of increasing employment, enabling local supply chain capabilities, increasing local content & advancing transformation www.wcac.co.za

Strategic Priorities

Supply chain competitiveness, enabling increased MVA, localisation & employment

Access to scale

& technology

Competitive skills

Competitive operating efficiencies

Competitive supply chains


(cross-cutting) www.wcac.co.za

Institutional Structure








Executive Committee


C. Rautenbach, Atlantis Foundries (Chair)


S. Ledgerwood, Precision Press (Vice-Chair)


T. Mancini, Senior Flexonics


T. Du Toit, Qtec Moulding


A. Turner, Torre Automotive


S. Rosenstein, CGI


N. Gwynne Evans, WCPG


M. Van Wyk, WCPG


D. Comrie, B&M Analysts

10. M. Arde, B&M Analysts


& Materials

Highlights since kick off Nov 2013

• Institutionalisation of WCAC with governance structures

• Development of formal Executive Committee comprising key members, stakeholders and government

• Development of strategy for WCAC and interventions in line with this

• Roll out of Graduate Development Programme for engineers for all members

• Regional Best Practice Study tours for industry

• Initiated WCM programme at five of six member firms

• Alignment with IPAP, NAACAM, WCPG, ASCCI

So what next? Build on successes to date

• Explore further potential

– Deepen localisation, grow exports and Aftermarket

• Thus far, foundation has been laid – great deal of progress in short amount of time

• Next step: reflect on achievements, identify any gaps

• Take action accordingly to build on success

Thank you and Good Buy

Further Background

Market & Technology Access

1. Objective - long term

Increased scale of production

2. Associated challenges

1.Geographically distant from domestic OEMs therefore reducing appeal as source of supply

2.Sub-optimal levels of benefit derived from APDP & other industry incentives

3.Industry not prioritised in provincial and local Government policy and strategy

4.Capital investment age profile and automation levels

5.Diversification of customer base identified as a key risk mitigation priority.

3. Outcomes required

1.Optimize benefit from APDP & capital investment incentives

2.Enhance links to localisation focus of domestic OEMs

3.Economic development strategy supportive of industry

4.Increased exports of components at Tier 1 & Tier 2 level to African, EU & USA markets


Skills Development

1. Objective - long term

• Greater productivity:

– Parity versus leading cost countries

2. Associated challenges

1.Lack of competitiveness relative to high income – high skill countries as well as low income-low skill countries

2.Limited availability of specialised skills as well as (less acutely) non-scarce automotive skills

1.Increased availability of management skills and ability of management to drive productivity enhancements

2.Increased availability of industrial engineering skills

3.Elevated performance of team leaders and operators

4.Enhanced labour market flexibility


Operational Capabilities

1. Objective - long term

• Supplier productivity:

– Parity versus leading cost countries

2. Associated challenges

1.Business management systems not uniformly in place or not optimally effective

2.WCM manufacturing practices not in place or not optimally effective

3.Sustainability of WCM interventions highly variable

3. Outcomes required

1.Objective identification of firm-level requirements

2.Support adoption and development of base business management systems

3.Support adoption of ECM best practices on a sustainable basis

4.Facilitate inter-company learning

Powered by


Supply Chain Management

1. Objective - long term

• Supply chain costs:

– Reduced inbound SCM costs

1.Geographically distant from major domestic OEM & AM markets, reducing cost competitiveness & attractiveness as a source of supply

2.Geographically distant from major domestic sources of raw materials

3.Long international supplier lead times reduce value chain flexibility & therefore negatively affect competitiveness

3. Outcomes required

1.Reduced real cost and perceived lead time of supply to major domestic markets

2.Reduced real cost and lead time of supply from major domestic hubs

3.Reduced logistical cost and/or lead time of imported materials

4.Reduced reliance on imported raw materials