Browsing by Author "Lubbe, Frederik Karl"

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    Identifying an optimum path to developing the South African automotive industry
    (Stellenbosch : Stellenbosch University, 2022-12) Lubbe, Frederik Karl; Bam, Wouter; Stellenbosch University. Faculty of Engineering. Dept. of Industrial Engineering.
    ENGLISH ABSTRACT: The automotive industry is a key contributor to the South African economy and has had strong government support through multiple incentive programmes since the introduction of the Motor Industry Development Plan (MIDP) in 1995. Despite this support, the South African automotive industry remains a second-tier contender in global value chains and is not yet capable of competing with the established automotive economies of the world. The introduction of the South African Automotive Masterplan to 2035 (SAAM2035) aims to transform the industry into being globally competitive. South Africa exports most of its locally produced vehicles and many of its key export markets have signalled intention to introduce internal combustion engine (ICE) vehicle bans as they move to a greener future. This research project aimed to analyse the South African automotive value chain to identify the products that have potential to be developed to a globally competitive level. Once a component was selected, the aim was to identify and evaluate the factors which impact location decisions for the activity. The research made use of both quantitative and qualitative frameworks. The Input-output Product Space (IO-PS) and the Location Determinants Evaluation Framework (LDEF) were applied to the research problem. The output of the IO-PS is a set of metrics which the researcher used to decide on a promising component to focus on. The LDEF used the selected product as input and utilises a qualitative approach involving a product-specific literature review as well as consultations and interviews with industry experts to identify key factors impacting location decisions for the product. The application of the IO-PS framework, in consideration with the SAAM2035 objectives, identified lithium-ion battery (LIB) packs as a promising component to develop. The LDEF analysed the location determinants relevant to LIB pack manufacturing and the state of these determinants in South Africa in order to rank the criticality of the factors. Ports and infrastructure management, manufacturer incentives and electricity supply were identified as critical constraining factors. The findings highlight the critical factors which need to be addressed in order to ensure that South Africa will be able to competitively manufacture LIB packs.