Impact of the motor industry development programme on the automotive component industry.

Abstract

The focus of this study revolved around the impact of the Motor Industry Development Programme (MIDP) on the automotive component manufacturers in the greater Durban area. The research objectives were to determine whether the introduction of MIDP has contributed to an increase in throughput for the automotive component manufacturers, to determine whether the introduction of MIDP has led to increased employment levels within the automotive component manufacturing industry and lastly to determine whether MIDP has resulted in increased investment in the automotive component manufacturing industry in KwaZulu-Natal. This study analysed the data received from 30 respondents, who as a pre-requisite, were employed within the component manufacturing industry in KwaZulu-Natal. The population sample was attained through the use of the author’s supplier database at Smiths Manufacturing (Pty) Ltd, a tier 1 automotive component manufacturer to the original equipment manufacturers in South Africa. A self-completion questionnaire, which was quantitative in nature, was distributed to the participants and a two week data collection period was allotted. The collected data was analysed using SPSS statistical software, the results of which revealed that MIDP was of significant importance to automotive component manufacturers in KwaZulu-Natal. It further revealed that there was a direct relationship between employment, investment and throughput with the introduction of MIDP. The same findings were evident for similar programmes in India and China.It is recommended that a similar study be conducted in Gauteng and the Eastern Cape, which are the other automotive component manufacturing hubs in South Africa. Furthermore, MIDP will be replaced by the APDP during 2013, and it is recommended.