Browsing by Author "Laing, Mare"
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- ItemEvaluating the developmental potential of the automotive industry in South Africa: A product space and location framework approach(Stellenbosch : Stellenbosch University, 2021-03) Laing, Mare; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.ENGLISH ABSTRACT: There has been and still is much controversy regarding the effectiveness of industrial policies to develop industries, but in the case of the South African automotive industry, the industry is regarded as being defined by industrial policies. Since the implementation of the first industrial policy program in 1995, the Motor Industry Development Programme (MIDP), the automotive industry has grown to become one of the most significant contributors to South Africa's GDP. The MIDP was followed by the Automotive Production and Development Plan (APDP) in 2013 and the revised APDP in 2021, for which the aim has been to develop the local automotive value chain. The South African Automotive Masterplan (SAAM) was developed as the automotive vision for 2035 but can only be realised if sufficient industrial policies supporting the plan's objectives are put in place. Although the South African automotive industry is regarded as an example where industrial policy programs were mostly successful, industrial policymaking is still regarded as a "learn by doing" or a "doomed to choose" process. Therefore, it can be assumed that there is still a need for more decision support tools. Thus, this study aimed to evaluate how the Input-Output Product Space (IO-PS) framework and Location Determinants Evaluation Framework (LDEF) could support policy decision making by applying the frameworks to the South African automotive industry and what the strengths and the weaknesses of these frameworks are. Firstly, the IO-PS framework was applied to the South African automotive value chain, and automotive body parts were identified as a possible development area. Secondly, the LDEF was used to determine the location success factors needed to make South Africa a viable location for manufacturing automotive body parts. The output from the frameworks was evaluated, and it was concluded that the IO-PS supports decision- making in selecting opportunities with the highest probability of structural growth. However, it is not successful in identifying products that cannot be exported due to physical attributes. The LDEF was deemed to successfully guide the consideration of location-, market- and location interaction success factors, although the process of applying the LDEF is cumbersome and time-consuming. Other strengths and shortcomings were identified, and areas for future work were suggested.