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 - 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.

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 Paris Motor Show returns in 2022

Following the cancellation of the 2020 Paris Motor Show, organisers of the Mondial De L’Auto to provide its proper name, have combined with Equip Auto to create Paris Auto Week aimed for October next year. 

The two flagship events in the automotive industry will come together and be held at the same time in autumn 2022 to form the Paris Automotive Week. 

Faced with historic challenges, the automotive sector is looking to the future more than ever, investing unprecedented amounts into vehicles that would provide sustainable and connected transport for all. Over the last few months, and after successive periods of lockdown, consumers around the world have proven the importance of freedom of movement and individual transport.

With its large companies, manufacturers and parts suppliers operating on a global scale, as well as its engineering companies, start-ups and all the distribution and repair companies, the automotive and transportation industry in France is one of the four largest players in the world and an effective incentive for innovation in the country. 

For the first time, the two flagship events in the automotive sector are coming together to form the Paris Automotive Week, which will be held at the Paris Expo Porte de Versailles exhibition centre from October 17-23, 2022. 

The Paris Motor Show will be the highlight of this automotive week. A digital platform will be launched over the next few weeks. It will offer automotive and transport multimedia content and allow French and international visitors to register and find all the information they need. 

The Equip Auto trade show, which will take place from October 18-22, is the leading international business-to-business event for after-sales and connected mobility services. It will be reserved exclusively for professionals, who will be able to access the Motor Show at the same time.

The Paris Automotive Week will be centred around a series of events, including inspiring talks and test drives. It will be a world premiere that brings together professionals and the general public, while also providing an opportunity for the automotive industry to share its vision for the future of automobiles and transport with journalists and visitors from France and world-wide. 

"After two years of living through the pandemic and faced with the unprecedented challenges looming over the automotive industry, we found ourselves together in the same place and it all suddenly became very clear to us. And so the ‘Paris Automotive Week’ was born. For one week, Paris will be the best showcase, lab and forum for 21st-century automobiles and transport,” says said Luc Chatel, President of the PFA (Plateforme Filière Automobile - French automotive sector platform). 

“It is a week where France will welcome the world to unveil the latest automotive models and present them to the general public, whilst also sharing with professionals the new developments and concepts designed to equip, maintain and repair the vehicles of today and tomorrow. It is a week to reiterate how important this industry is to France - an industry that is at the heart of the innovation shaping future sustainable mobility.” 

“Whilst still keeping their own individual identities, the two shows were duty bound to create this new international event, which is open to the general public, professionals and policy makers," adds Claude Cham, Honorary President of the FIEV (Fédération des Industries des Equipements pour Véhicules - French Federation of Vehicle Equipment Industries) and President of Equip Auto Sas.

 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.