Daimler Truck achieves production milestone

Daimler Truck Southern Africa (DTSA), the East London-based truck assembly plant, marked a significant achievement recently by officially rolling off the 800 000th Completely Knocked Down (CKD) kit from its parent factory in Woerth, Germany.

The vehicle, a Mercedes-Benz Actros 2645LS/33, emerged from the assembly line in a joint celebration with the Woerth source plant in Germany. Sesfigile Logistics and Safety One Logistics, both owned by Nelen Gounder, purchased the truck to commemorate their respective 20th and 10th anniversaries.

The Woerth plant, founded in 1963, is Mercedes-Benz Trucks’ largest truck assembly facility. Here, the Actros, Arocs, and Atego model series take shape. Additionally, Woerth produces the battery-electric Mercedes-Benz eActros 300/400 for distribution haulage, along with the eEconic electric series-production truck for municipal use. The eActros 600, designed for long-distance haulage, is set to enter series production by the end of 2024.

The East London assembly plant boasts a storied history spanning six decades. From the first Mercedes-Benz Truck in 1962 to thousands of trucks and buses today, the plant remains a cornerstone of the Buffalo City Metropolitan Municipality.

Employing around 300 people, it ranks among Daimler Truck’s largest CKD-plants outside Europe. In 2019, DTSA assembled its 750 000th CKD unit, a Mercedes-Benz Actros 2652 LS 6×4.

Gladstone Mtyoko, Vice President for Manufacturing, acknowledged the complexity of assembling products from four different source plants on a single production line. Despite this, the team consistently delivers high-quality units. The assembly of the 800 000th CKD truck stands as a proud milestone for both the Woerth and local East London plants.

Sesfigile Logistics commands a fleet of 200 trucks, specializing in beverage and petroleum transportation. Its reach spans local, national and cross-border logistics, while. Safety One Logistics, grounded in precision and efficiency, handles petroleum and specialized products with care.

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Africa Automotive: Morocco usurps South Africa as leading auto hub

In the realm of motoring manufacturing in Africa, Morocco has emerged as a surprising leader, outpacing traditional powerhouse South Africa. With a strategic geographical positioning, favourable economic policies, robust infrastructure, a skilled workforce and competitive production costs, Morocco has become the continent's auto hub.

Morocco's advantageous positioning on the world map, nestled at the junction where Europe, Africa and the Middle East converge, naturally bestows upon it an unparalleled edge in market accessibility. This prime location not only facilitates the seamless movement of goods across borders but also significantly reduces transportation costs and timeframes.

Automakers, in pursuit of establishing a global footprint, find Morocco's proximity to European markets particularly appealing, as it enables them to cater to a diverse customer base with heightened efficiency. The nation’s strategic placement is not merely a geographical boon but a gateway that opens up a spectrum of opportunities for the auto industry to thrive.

By capitalising on this unique advantage, Morocco has adeptly positioned itself as a central hub in the automotive sector, offering access to a vast array of markets. This strategic geographical positioning is a cornerstone of Morocco's ascendancy in becoming the pre-eminent auto manufacturing hub on the African continent, underscoring its significance in the global automotive landscape.

Favorable Economic Policies and Investment Incentives

The Moroccan government has been astutely aware of the potential economic uplift that the automotive sector could usher into the nation. In a strategic move to harness this potential, an array of favourable economic policies and enticing investment incentives have been put in place.

These policies are not just superficial lures but are deeply entrenched frameworks designed to cultivate a thriving automotive manufacturing ecosystem. Tax exemptions, significant subsidies, and a streamlined bureaucratic process offer a fertile ground for foreign automakers to plant their roots without the customary fiscal burdens or red tape that can stifle growth and innovation.

Furthermore, these incentives are tailored to bolster long-term investments and collaborations, positioning Morocco not just as a manufacturing base but as a partner in automotive excellence. This proactive approach by the Moroccan government has been pivotal in transforming the national landscape into an attractive haven for automotive giants, fostering an environment where the auto industry can flourish unencumbered by the usual constraints faced in other regions.

Robust Infrastructure and Logistics Network

Morocco's standing as a beacon of automotive manufacturing efficiency is markedly reinforced by its state-of-the-art infrastructure and comprehensive logistics network. The country is equipped with cutting-edge ports, which are amongst the most modern in Africa, ensuring that both the import of raw materials and the export of finished automobiles are conducted with the utmost efficiency.

Its railways and roadways, developed with precision engineering, span the length and breadth of the nation, facilitating an unimpeded flow of goods within Morocco and beyond its borders. This intricate network of transport modalities is pivotal in ensuring that production lines are never halted due to logistical setbacks, thereby enabling automakers to adhere to stringent delivery schedules.

Beyond mere transportation, the logistical prowess of Morocco extends into the realm of supply chain management. With advanced systems in place, the tracking, handling, and distribution of automotive components are executed with laser precision, thereby minimising wastage and optimising resource allocation.

This robust infrastructure and logistics framework not only underpins the operational excellence of Morocco's automotive sector but also serves as a magnet for global automakers in search of reliability and efficiency in their manufacturing processes. It's this seamless integration of infrastructure and logistics that fortifies Morocco’s position as a formidable contender in the global automotive arena, setting a benchmark for others to follow.

Skilled Workforce and Training Programs

A pivotal element in Morocco's rise as the automotive hub of Africa is its investment in cultivating a skilled workforce, underpinned by an emphasis on specialised training programmes.

The nation has strategically developed a network of vocational training centres and partnerships with global automotive companies, aimed at equipping its labour force with the necessary expertise to meet the demanding standards of the industry.

Renault's Tangier plant.

These programmes are not only tailored to the intricacies of automobile manufacturing but are also designed to be dynamic, evolving in tandem with the latest advancements in automotive technology and processes. As a result, Morocco boasts a pool of highly skilled technicians, engineers and workers who bring a blend of technical acumen and practical experience to the production lines.

This commitment to workforce development ensures that the country's automotive sector is powered by individuals who are not just proficient in their roles but are also innovators capable of driving efficiency and excellence. The strategic foresight in fostering such a skilled workforce serves as a linchpin in Morocco's automotive industry, enabling it to not only compete but also set new standards on the global stage.

Competitive Production Costs and Quality Standards

In the landscape of global automobile manufacturing, Morocco distinguishes itself not only through its strategic initiatives but also via its competitive edge in production costs and adherence to high-quality standards. The convergence of lower labour expenses, advantageous energy rates and reduced operating costs positions

Morocco as an appealing hub for automakers aiming to enhance their operational efficiency. This financial attractiveness is complemented by a steadfast commitment to quality. Moroccan production facilities are governed by stringent quality control measures, ensuring that each vehicle not only aligns with but often surpasses international quality benchmarks.

This meticulous attention to cost-efficiency coupled with quality excellence underscores Morocco’s capability to produce vehicles that stand up to global scrutiny, thereby cementing its status as a formidable player in the automotive domain. The synthesis of cost competitiveness and quality assurance is pivotal in Morocco’s ascension as the automotive leader in Africa, showcasing a model of manufacturing excellence that resonates on a worldwide scale.

Images: supplied (Cover image Ulli/Pixabay)

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Africa Automotive - The clock is ticking

As the clock counts down to the Intra Africa Trade Fair (IATF) taking place in Cairo, Egypt in November, the pace of African automotive development is picking up pace. . .rapidly.  

In new recent developments, Chinese automaker BYD – which recently launched in South Africa – announced its launch plans in Morocco in an alliance with Auto Nejma, a key player in automobile distribution in Morocco.  

Still in Morocco – The Minister of Industry and Trade, Ryad Mezzour, and Frank Huber, Forvia Group’s Executive Vice-President of Seating, recently launched the construction of the group’s new production facility in Sale near Rabat.  

The new industrial plant, which will expand the Group's industrial activity in Morocco, will specialise in the cutting and production of textile and leather covers for automotiveseats, to meet the demand of numerous European automakers.  

The equipment manufacturer will invest $15,4-million in this industrial initiative, which will generate 1 400 new jobs.   

“This fourth Faurecia plant reinforces our positioning as a destination of choice for investment in the automotive sector. It is a clear sign of the confidence of renowned players in our industrial potential and assets,” Mezzour says, adding, “this project will bring an added value to the Rabat-Sale-Kenitra region, reinforcing its position as a benchmark industrial hub in the automotive industry.” 

“We've been present in Morocco for nearly fifteen years, and we're delighted to open a new chapter in this country, where we already employ nearly 4 000 people, by expanding our plant in Sale,” Hubert stated.   “Morocco has seen significant growth in the automotive sector in recent years. We are delighted to be strengthening our position in this ecosystem today, and would also like to thank the local authorities for their support from the outset of this project,” he added.  

Since 2008, Faurecia, a Forvia Group company and the world's 7th largest automotive technology company has had three production facilities in Morocco: two in Kenitra and one in Sale.  

Algerian Trade and Export Promotion Minister, Tayeb Zitouni, recently announced China has agreed to build an automobile factory in Algeria and Yazaki, a Japanese car parts supplier, has signed an agreement with the Governor of Fayoum in Egypt to allocate land for a new factory that will be constructed by the company's local subsidiary using $33,27-million in investments. 

Although South Africa remains the largest automobile manufacturing country in Africa, the gap is narrowing and particularly in the establishment of investment in the supply chain sector.  

A quick snapshot of some of the activity around Africa shows:  

Ghana: Kantanka Automobile Company: Founded by Kwadwo Safo Kantanka, this indigenous automaker has been producing vehicles since the early 1990s. Kantanka’s production facilities in Ghana assemble a range of vehicles, including sedans, SUVs, pickups, and luxury cars. The company focuses on designing and manufacturing vehicles that cater to the specific needs of the African market.

Nigeria: Innoson Vehicle Manufacturing (IVM): Innoson Vehicle Manufacturing (IVM), founded by Innocent Chukwuma, is a leading player in Nigeria’s automotive sector. IVM has established a modern production facility in the city of Nnewi, where it assembles a diverse range of vehicles, including cars, buses, and trucks.

Kenya: Mobius Motors: Mobius Motors, headquartered in Nairobi, is a notable example of Kenya’s commitment to producing vehicles that meet local transportation challenges. The company focuses on creating affordable and rugged vehicles designed for African road conditions and transportation needs. 

The African Automotive Show runs concurrently with IATF2023 from November 9 to November 15 and, based on figures from the last IATF, held in Durban, could generate more than R840-billion in trade deals.  

Besides the 1 600 exhibitors, 79 countries and 35 000 attendees that will be participating at the event, here are another nine reasons you need to register today.  

Automotive companies including commercial (bus and truck) and passenger vehicle manufacturers, assemblers, importers, component manufacturers, dealers, parts & accessories distributors, electric motorcycles and vehicles, infrastructural projects and agencies, other members of the value-chain, including mineral processing, logistic services providers and automotive development agencies will have an opportunity to showcase their products and also interact with potential buyers, suppliers and governments.

The Automotive Forum (conference), spearheaded by the African Association of Automotive Manufacturers (AAAM) addresses the most pertinent issues affecting Africa’s automotive growth. Highlights of the 3-day program include:

- Presentations from global automotive leaders, including multi-national OEMs

- Participation of several Heads of State

- An agenda that seeks to facilitate cooperation and the development of regional auto supply chains (trade between auto hubs) for auto manufacturing on the continent.

- Unprecedented networking with all of Africa’s key role-players and international partners.

A B2B and B2G platform: The platform will provide matchmaking and business exchange opportunities for vehicle manufacturers, vehicle assemblers, OEMs and component suppliers and other automotive industry service providers, leading to the conclusion of business and investment deals across various sectors.

This is supported by a dedicated African Buyers' Programme  Africa (excluding South Africa) currently accounts for only 0,5% of the global automotive market (600 000 units). Its motorisation rate is just 45 vehicles per 1 000 inhabitants - significantly below the global average of 203.   The exhibition will attract continental and global buyers and sellers, including executives and market expansion managers that will engage in business deals in, amongst others:

- Parts Manufacturing, including EV components, batteries and solar

- Raw Materials

- Parts Supply

- Parts Distribution

- Vehicle Manufacturing

- Component Manufacturers

- Vehicle Aftermarket Services

- Logistics Service Providers

- Infrastructural Projects e.g. Special Economic Zones

- Vehicle Accessories:

- Vehicle Electronics

- Vehicle Security

- Vehicle Maintenance

- Electric Vehicle Supply

- Electric Vehicle Accessories

- Vehicle Finance (Including Insurance)

  While challenges exist, the potential impact of a flourishing automotive sector is immense. The growth of the industry can drive economic development, create jobs, facilitate technology transfer and meet the unique transportation needs of African consumers.  

https://bit.ly/3DDxFZG

Africa Automotive - Ghana to hold auto summit

With more than 20 models assembled in Ghana, the West African country is rapidly becoming a major automotive roleplayer on the continent and will hold its maiden Automotive Summit on  June 27, at the Accra International Conference Centre (AICC) Grand Arena.

The theme for the summit; ‘Creating A New Economic Backbone for Ghana and The Sub-Region,’ will present an opportunity for leading experts and industry professionals in the sector to discuss the latest trends, challenges, and opportunities in the automobile industry. 

“We are delighted to host this maiden summit, which will explore the future of the automobile industry and the technologies and innovations that will shape it. This will provide us with the opportunity as a country to discuss the issues and opportunities impacting businesses and the automobile industry as a whole,” the AAAG President, Jeffrey Oppong Peprah emphasised.

Jeffrey Oppong Peprah

The AAAG membership includes Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, Silverstar Ghana and Stallion Group Toyota-Tsusho Company. Associate members are Toyota Ghana and CFAO Motors Ghana.

The event is expected to attract an audience of hundreds of senior-level representatives from across the breadth of the industry, including vehicle manufacturers, component manufacturers, engineers, government, the financial sector, insurance, global organisations, and the media.

The panel discussions will address key areas of focus for the automotive ecosystem including sustainability, competitiveness, standards, the creation of a local used car market, component manufacturing, retail, auto financing, and insurance, amongst others.

Speakers will include Senior executives from vehicle manufacturers, policymakers, and a host of content experts from automotive and aligned industries.

This summit is proudly supported by the Africa Continental Free Trade Area (AfCFTA) Secretariate, Ghana Investment Promotion Centre (GIPC), and the Ministry of Trade and Industry.

https://bit.ly/45WaEhl

Africa Automotive - Volkswagen supports Africa growth

Volkswagen is fully supportive of growth in the automotive industry in Africa, having taken over the assembly responsibilities of the plant in Ghana from its licenced importer, Universal Motors Limited.

The Africa Union commemorates it 60th anniversary this year on Africa Day with the slogan ‘Our Africa, Our Future’ and this slogan resonates strongly with Volkswagen as the company continues to grow its presence on the continent.

Ghana is the fourth Volkswagen assembly location in Sub-Saharan Africa after Kenya, Rwanda and South Africa, where Volkswagen has been manufacturing vehicles for more than 72 years.

Volkswagen Group South Africa (VWSA) Chairperson and Managing Director, Martina Biene, is positive about Africa’s growth potential, saying a number of African countries have introduced compelling incentive plans for locally assembled vehicles to attract OEMs such as Volkswagen to invest in the development of the automotive industry on the continent.

From left Volkswagen Ghana Chief Executive Officer, Jeffrey Peprah, Martina Biene, Chairperson and MD of Volkswagen Group South Africa, Andrew Potgieter, VWSA advisor to Ghana, Ulrich Schwabe, VWSA Production Director and Thomas Milz VWSA Sales and Marketing Director at the recent Ghana plant opening.

“We are encouraged by the automotive policy changes which some of the countries have implemented or in the process of implementing. These policies will help us to sell new high-quality vehicles which are backed by a well-established global brand to our African customers,” said Biene.

Biene added Sub-Saharan Africa has become very important for the sustainability of Volkswagen.

Future

“The future of Volkswagen is in Africa. We are therefore accelerating our growth strategy on the continent by playing a pioneering and leading role in the development of the automotive industry.”

Volkswagen already has a presence in 17 countries in Sub-Saharan Africa where it sells passenger and commercial vehicles through licensed importers.

“We will continue to grow the Volkswagen brand in these markets and strengthen our aftersales support to customers. Ongoing training is provided to technical staff at the Volkswagen locations to meet customer requirements and expectations,” Biene added.

Growing

According to the African Development Bank of the world’s 10 fastest growing economies, five are in Africa - Rwanda, Côte d’Ivoire, Benin, Ethiopia and Tanzania.

Biene affirmed Rwanda and Côte d’Ivoire are also two of Volkswagen’s fastest-growing markets. Rwanda, with an economy growing at close to 8%, shows significant potential for increased mobility solutions and electric vehicles due to its relatively young, tech-savvy population and growing middle class.

“Rwanda has been the success story of our growth plans in Sub-Saharan Africa. It is also the innovation hub of our sustainable mobility lighthouse projects on the continent. Our mobility solutions services business, which includes ride-hailing and corporate car sharing, broke even last year. Rwanda was also the first country in Sub-Saharan Africa to launch a Volkswagen electric vehicle with the e-Golfs,” concluded Biene. 

https://bit.ly/3OECKYs

Africa Automotive: Talking parts in Nigeria

Approval by Nigeria’s Federal Executive Council of the new National Automotive Industry Development Plan (NAIDP) for 2023 will go a long way to strengthening any proposals emerging from the West Africa Automotive Show (WAAS) Conference in Lagos that opens tomorrow (May 16).

In its broad form, the NAIDP is intended to provide competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders.

The NAIDP is aimed at enabling the exponential increase in the local production numbers of vehicles, reaching 40% local content and attaining 30% locally produced Electric Vehicles.

In terms of WAAS, the primary issue, according to former National Automotive Design and Development Council (NADDC) director of planning and strategy, Luqman Mamudu, is the fact local manufacturing of parts and vehicle assembly have stalled, meaning the country relies on “imports of used parts and substandard new ones” with an import bill of $3,3-billion annually.

Mamudu, who will chair the conference at Nigeria’s largest automotive aftermarket trade event says:“I expect that the inaugural conference of WAAS and the show itself will deepen demand for new parts in Nigeria.

“The dominance of used parts potentially undermines any attempt at local manufacturing as they are far cheaper than the original new ones and are perceived as OEM (original equipment manufacturer) standard.”

“Another adverse impact of the full reliance of fully-built automotive importsis that certainly constitutes a strain on the balance of payment position and missed opportunities to create employment. This has the potential to undermine the economy. It is particularly worrying to me because 70% of this is accounted for by pre-owned vehicles and used parts obtained from salvage vehicles.”

However, there is strength in the Nigerian automotive industry with investment of more than $1-billion in manufacturing and assembly capability and he adds: “These facilities remain intact in the form of annual installed capacity of more than 500 000 vehicles. The presence of several global OEMs remains a pipeline of access to technology and capital once the environment is right. Nigeria also boasts a reserve of trained but presently unemployed skilled workforce.

‘By 2017 the NAIDP through a combination of fiscal incentives and protective measures grew installed assembly capacity to above 400,000 units per annum, but only 10% capacity utilisation has been recorded  due to weak policy implementation.

“But it is noteworthy that NAIDP caused the revitalisation of existing automotive assembly plants including Peugeot, Mercedes Trucks, and Volkswagen.”

Mamudu said the conference aims to highlight the need for safety and quality in automotive products.

“Used parts imports account for nearly 90% of aftermarket share. The reasons observed are varied but the preference for used components may be due to eroded confidence for new parts.

“Substandard new components and parts are common in the market, so people are suspicious. To build confidence, suppliers must deploy product quality standards tracking systems. Global brands must also expand their service and parts network as outlets for genuine parts,” he said.

What emerges from that conference will be eagerly awaited by all the stakeholders just as eager to see the full implementation of the African Continental Free Trade Area (AfCFTA), which will be a hot topic at the Intra Africa Trade Fair in Cairo later this year.

https://bit.ly/3IaUypP

Colin-on-Cars - Volvo Trucks assembles Euro 5 locally

Although Euro 5 truck variants have been available in South Africa since 2012, these are now being assembled at the Volvo Trucks South Africa assembly plant in Durban, KwaZulu-Natal.

“More customers have ambitions to improve their environmental footprint, which is driving the uptake of Euro 5 models locally,” says Eric Parry, Sustainability Manager at Volvo Trucks SA.

“In general, the Euro 5 engines have a lower fuel consumption than an equivalent Euro 3 unit, which means even though total costs are roughly the same because of the need for AdBlue diesel exhaust fluid on the vehicle, the CO2 emissions are reduced with the lowering of fuel consumption.

“There is also the significant reduction in poisonous gases from the exhaust, which in turn improves the environment around the vehicle.”

Production

Euro 5 assembly at the plant does not come at the expense of the production of the company’s current range, it is complimentary.

Volvo Trucks has initially started with the assembly of Euro 5 level FH truck-tractors, the company’s long-haul icon, as this is the model customers are asking for. More models and configurations will be added over time as fleet owners require them.

“The need for local assembly also arose to reduce the import duty that is applied to full imports. This allows Volvo Trucks the opportunity to offer the cleaner technology in a more competitive way,” comments Parry.

Certain layout changes were made to the facility to accommodate AdBlue filling in trucks, as well as for storage. Additional floor layout adjustments were also done to allow for new procedures like the assembly of AdBlue tanks and special exhaust systems.

Assemble

“Operators have also received advanced training to assemble the new features connected to the Euro 5 specifications. Specialised training was also provided for road testers and product auditors to ensure the highest standards are maintained throughout the assembly and QA processes,” explains Aubrey Rambau, Volvo Trucks Plant Director.

“Quality is the basis of everything we do. From the way we design, manufacture and test our trucks, to the services, parts and people who support them.”

The Volvo Trucks plant has also recently installed a new solar power system to generate renewable energy for the facility. A total of 440 solar panels and two solar inverters will generate 243 kW of power - approximately 60% of the energy needed for the plant.

“At Volvo, environmental care is fundamental to how we do business, and this project is another step in our energy efficiency journey,” says Rambau. “We believe in sustainable transport solutions. And we’re confident that our trucks, services and operations will lead the way there.”

https://bit.ly/3D27Cvv

Big moves at Ford ahead of new Ranger 

Ford South Africa is in literal overdrive mode, having sneaked a few images of the upcoming next generation Ford Ranger that will be manufactured at its Silverton, Pretoria plant at the same as announcing it has produced its 500 000^th Ranger for export, which is a fitting achievement since it is also the current model’s 10^th anniversary this year. 

The #NextGenRanger will be revealed later this year and launch in 2022 and, according to Ford, embraces superior off-road credentials and Ford’s dynamic driving DNA, to be the toughest, most capable and connected Ranger pickup yet developed by Ford. 

Ramping up for production has also meant the creation of 1 200 incremental jobs by adding a third shift as part of the R14-billion investment in its Silverton Assembly Plant.

 

View the official glimpse video here - https://youtu.be/x8i2VevQaA0

Exports of locally assembled Ford Rangers initially commenced in 2000 for the previous-generation model, but it was the 2009 announcement of a R3,4-billion investment in Ford’s local operations that transformed the Silverton Assembly Plant to build the current and, at the time, most advanced Ranger yet. 

The export-driven investment programme also encompassed the Struandale Engine Plant in Gqeberha (formerly Port Elizabeth), which commenced production of the 3,2-litre and 2,2-litre Duratorq TDCi engines and components for domestic assembly and for exports to other Ford plants around the world. 

The then all-new Ranger was launched in South Africa in October 2011, and has gone on to become one of the country’s best-selling vehicles, the leading light commercial vehicle (LCV) export, and an important contributor to the success and growth of the domestic automotive industry and the economy as a whole. 

“The launch of the new Ford Ranger in 2011 was a watershed moment for Ford South Africa, for the domestic market and the broader pickup segment internationally,” says Neale Hill, MD of Ford South Africa. “It immediately set entirely new benchmarks in the pickup sector for performance, technology, safety, comfort, refinement and capability.”

 

At launch in 2011, the installed capacity for local Ranger production was 110 000 vehicles a year, but ongoing investment in Ford’s local operations ramped up production capacity to 168 000 units by 2018. 

A total of R11-billion was invested in Ford’s South African manufacturing plants over this period to facilitate the volume growth, as well as to introduce new technologies such as the impressive new 2.0-litre Bi-Turbo and Single Turbo engines assembled at the Struandale Engine Plant. These engines were launched in 2019 as part of a comprehensive Ranger upgrade which included the sophisticated new 10-speed automatic transmission. 

“Achieving 500 000 exports for Ranger is a fantastic milestone for the South African team,” says Ockert Berry, VP Operations at Ford South Africa. “The investment and subsequent launch of the current Ranger in 2011 transformed our manufacturing operations, and put South Africa firmly on the map as a high-volume single platform manufacturer for Ranger, both for the domestic market and, crucially, for exports to more than 100 global markets, including Europe where Ranger is now the top-selling pickup. 

“Although the milestone 500 000 exports extends from 2000 to 2021, the start of the new Ranger export programme in 2011 took our manufacturing operations to new heights,” Berry says. “We went from a total export volume of around 16 500 units of the previous Ranger between 2000 and 2011 to just shy of half a million units of the current model between 2011 and 2021. We are exceptionally proud of the legacy that has been built for Ford in South Africa, and our ongoing commitment to the country.”

 

The local workforce has increased from the current 4 200 Ford South Africa employees to approximately 5 000, along with an additional 440 jobs at the plant’s on-site service provider. This takes the total Ford employees at the Silverton facility more than 4 100, with 850 people employed at Ford’s Struandale Engine Plant. 

The reintroduction of the third shift will support expanded production of the current Ranger pickup to meet strong local and international demand. It will also enable an increased production capacity for the next-generation Ranger, starting in 2022. 

This is the first use of a three-shift production schedule since it was implemented as a temporary measure during the second half of 2019 to fulfil higher production volumes required for the current Ranger – and will see the Silverton Assembly Plant operating around the clock, five days a week. 

“Crucially for our communities, the higher production volumes mean more jobs, and we are delighted to add the 1 200 jobs that now fill the third shift from the beginning of September,” Berry says. “We first ran three shifts and 24-hour production for a limited period in 2019 to meet higher volume targets, and we are delighted to reinstate this extra shift as a permanent fixture as we ramp up our production. 

With the additional shift, the Silverton Assembly Plant will be capable of producing up to 720 vehicles per day, or 240 units a shift – which equates to one new Ranger coming off the line every two minutes.

Additionally, Ford is currently constructing an all-new Body Shop and Stamping Plant on the Silverton site, along with a new in-house Frame Line in the adjacent Tshwane Automotive Special Economic Zone (TASEZ).

 

“The biggest change has been a total redesign of the plant layout,” says Plant Manager Tim Day. “The progressive evolution of the plant saw it growing organically over the years, which resulted in a less-than-ideal layout. Accordingly, we’ve completely reworked the assembly line to maximise efficiency through the vehicle assembly and validation processes. 

“We’ve removed roughly a kilometre and 20 transactions out of the previous assembly line flow by eliminating the back-and-forth movement of vehicles within the plant during the various stages of production,” he adds. “This will result in all of the manufacturing processes and quality checks being performed in the zone where it’s manufactured, contributing towards greater efficiency and more effective quality control before the vehicle moves to the next station. 

“We did away with the previous vehicle carriers and replicated the skillet system which is used at Ford’s leading plants around the world, including the Ranger plant in Thailand and the F-150 plant in the US,” Day explains. 

“The skillet system is far less bulky and restrictive, and eliminates the various platforms and levels that people had to work around previously.” 

Click here to view the video on the Silverton upgrades: https://youtu.be/0YOcXu5z0P0

 More investment as C-Class rolls of the East London production line

With the manufacture of the latest generation Mercedes-Benz C-Class having started at the company’s East London plant, it has also announced an additional investment of R3-billion. 

The plant upgrades feature environmentally-friendly buildings including a technologically advanced paint shop, body shop, assembly and logistics warehouse. 

Jörg Burzer, Member of the Board of Mercedes-Benz Cars, responsible for Production and Supply Chain Management says: “South Africa is an important location in our global Mercedes-Benz production network. The team in East London made a remarkable contribution to the international ramp-up of the new C-Class that we produce through efficient, flexible, digital and sustainable operations.

 

Thanks to the exceptional work of our colleagues in South Africa and all over the world and their first-class cooperation, our modern plants are able to produce outstanding vehicles like the new C-Class. With our additional invest of R3-billion in East London Plant, we underline our commitment to contributing to the South African economy and the Eastern Cape region."  

Commenting on the additional investment and start of production of the new C-Class, the Minister of Trade, Industry and Competition, Ebrahim Patel, said: “the launch of this new Mercedes-Benz C-Class, the latest generation to grace the roads of South Africa and the world, positions Buffalo City and the rest of Eastern Cape to continue its legacy of advanced manufacturing. Through the South African Automotive Masterplan, and the Automotive Production and Development Programme (APDP), we have created a platform for investment in the industry, deepening our technological expertise, creating local value chains, and securing jobs.”

Since the investment announcement in 2018, the R10-billion investment was utilised for a wide modernisation of the East London plant. The plant upgrades include a new Body Shop, which has been designed for higher capacities and features more than 500 ‘Internet of Things’ Industry 4.0-enabled robots. To allow the East London Plant to increase volume outputs, optimise the assembly line and achieve commercial synergies, a new Body Shop has been built at the East London Industrial Development Zone (ELIDZ), where vehicle parts for the New Generation C-Class are manufactured. 

More than 700 tons of steel have been installed for the additional three lines in the assembly shop and a new logistics warehouse. Utilising new methods such as art application technology, the new paint shop is now even more energy efficient and more environmentally-friendly. 

Overall, the new buildings comprise an area of approximately 100 000 sq/m. This reflects an addition of two thirds of the already existing buildings for the passenger vehicle production. At the Mercedes-Benz Learning Academy, additional robotics were installed for training. The Mercedes-Benz Learning Academy (MBLA) is a flagship and sustainable Public Private Partnership in cooperation with the National Treasury and the Jobs Fund.

 

Commenting on the successful ramp up of the New Generation C-Class, CEO of Mercedes-Benz South Africa and Executive Director of Manufacturing, Andreas Engling said: “Despite a tough year in 2020, we were able to accomplish what we had planned. To date, all of our buildings are complete and we are ready for the production of the new generation C-Class in full force.” 

With Ambition 2039, Mercedes-Benz strives for a fully networked and completely CO2 neutral vehicle fleet in less than 20 years, aiming to have plug-in hybrids or all-electric vehicles to make up more than 50% of its sales by 2030. 

In support of Ambition 2039, locally, the Mercedes-Benz Plant in East London has embarked on numerous initiatives to help preserve the environment for future generations. The new paint shop is more energy-efficient, reducing energy consumption per vehicle by 25%. The new buildings have been equipped with energy efficient LED lighting, which uses up to 90% less energy per lumen output. 

Additional plant sustainability initiatives include battery storage containers; rainwater recycling with a water storage of 1-million litres; green areas which have been installed on the corridors and the roofs as well as soluble labelling which is being utilised on production parts packaging to minimize waste reduction. 

“At Mercedes-Benz South Africa we are committed to an environmentally-friendly production. As such, we focus our efforts on the efficient use of resources. Through the certification and carbon offset strategy, the East London Plant will become CO2 neutral as of January 2022. As an organisation, we remain committed to a sustainable present and a bright and hopeful future,” added Engling.

Volvo's Torslanda plant becomes 

climate-neutral 

With no net increase in the emission of greenhouse gases as a result of the electricity and heating used by the plant, Volvo’s Torslanda facility has become climate-neutral and the first of its car manufacturing operations to reach that status. 

This makes Torslanda the second plant in its overall manufacturing network to reach this status, after the Skövde engine plant in Sweden became climate neutral in 2018. 

The Torslanda plant, the company’s oldest, has been powered by climate-neutral electricity since 2008. It now also has climate-neutral heating. Half of the plant’s heating comes from biogas, while the other half is predominantly sourced from district heating through industrial waste heat. 

“Establishing Torslanda as our first climate-neutral car plant is a significant milestone,” says Javier Varela, Head of Industrial Operations and Quality at Volvo Cars. “We are committed to having a climate-neutral manufacturing network by 2025, and this achievement is a sign of our determination as we consistently work to reduce our impact on the environment.” 

Apart from becoming climate neutral, Torslanda also constantly reduces the amount of energy it uses. Targeted improvements in its operations during 2020 resulted in annualised energy savings of almost 7 000 megawatt-hour (MWh), equal to the annual energy usage of more than 450 Swedish family homes. 

In the coming years, Volvo Cars plans to make further efficiency upgrades to the plant’s lighting and heating systems, among other things, which should result in additional annual energy savings of around 20 000 MWh by 2023. These energy savings are part of a wider ambition for Volvo Cars to reduce energy usage per car produced in its manufacturing network by 30% in 2025. 

In addition, Volvo Cars will develop its own renewable electricity generation capacity on-site. 

Volvo Cars’ climate-neutral manufacturing target is part of the company’s climate plan, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars’ ambition to electrify its entire line-up.

Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company’s wider operations, its supply chain and through recycling and reuse of materials by embracing the circular economy.