Summary Report on the Activities of the AIEC
The inaugural meeting of the Automotive Industry Export Council (AIEC) was held
in Johannesburg on 22nd June, 1999 to consider the rationale for the establishment
of an export council for the South African automotive and associated industries.
Arising from the discussions and presentations - which included input from the Department
of Trade and Industry representatives as well as the industry regarding the merits
of a formal industry structure to coordinate and address matters of interest to
South African manufacturers involved in exports of vehicles and automotive components
- it was clear that there was broad support, in principle, for the establishment
of an automotive industry export council (AIEC).
A broad range of challenges and problems facing South African exporters in the development
of export opportunities and new export markets were highlighted and it was the consensus
view that the role of the proposed AIEC would be particularly important in identifying
problem areas and obstacles to South African companies becoming more competitive
in the export field. It was also decided that the focus of activities of the council
should be in the area of non-competitive generic export projects and issues.
Based on comments at the inaugural meeting by representatives of a broad range of
exporting automotive companies - it was agreed that the council should, as part
of its work, focus on the logistics of the entire supply chain and explore the benefits
of the possible pooling of logistical resources - in Europe and other parts of the
world - such as the sharing of warehousing facilities offshore by South African
exporters.
The inaugural AIEC meeting considered and endorsed the objectives of the export
council as per the draft constitution which had been circulated to all automotive
industry exporters prior to the meeting.
In terms of the way forward, the inaugural meeting of the AIEC took a number of
decisions, namely:
- That the council should be nationally representative
of exporters of automotive products and motor vehicles and that regional initiatives
such as the Eastern Cape Cluster Initiative and the Pretoria Metro Development Initiative
should be invited to participate in the activities of the council. This is regarded
as important to avoid the possibility of a fragmented regional approach to automotive
industry export initiatives;
- That an executive committee should be appointed to
address the next steps involved in the establishment of the council including the
preparation of a budget for the operation of the council and a three year council
business plan. The executive committee is scheduled to meet on 15th September, 1999;
- That the operation of the council should be conducted
on a cost effective basis and, during its formative stage, NAAMSA has offered to
provide administrative and secretarial support services to the council. In terms
of subscription charges, it was agreed to set the subscription per council member
at R1 000 for the balance of 1999 with the fee for SMME export council members at
one third of that amount;
- That the AIEC should actively participate in the deliberations of the National Export
Advisory Council to address the broad macro issues involved in enhancing the South
African automotive industry's export capability.
The establishment of an automotive industry export council assumes particular importance
against the background of two major trade accords by South Africa, namely, with
the European Union (EU) and the South African Development Community (SADC) which
are both set for implementation with effect from 1st January, 2000.
N M W Vermeulen, 23rd August, 1999
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National Association of Automobile
Manufacturers of South Africa
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