Abstract
D.Comm.
The South African automotive sector and its various role-players are caught in a battle
for survival. A variety of national and international challenges are being faced. The
international change agents are in the form of globalisation and trade liberalisation.
These are forcing the country to open up its previously protected automotive industry
and become exposed to global competition. These and other developments are laying
bare the reality that South Africa and its automotive industry will, in its current format,
not be able to withstand the competitive pressures. South Africa's national
competitiveness is generally weak, with the country exhibiting particular shortcomings
in the area of human capital development, human capital deployment, the inability to
sustain growth and attract investments, as well as the creation of wealth in general. The
local automotive industry is also under significant pressure through global automotive
developments as well as its own lack of competitiveness. The lack of competitiveness
is mainly due to historic protectionism and disadvantages of a small local market.
Survival depends increasingly on a rise in South African automotive exports. This will,
however, require that a variety of particular weaknesses are dealt with effectively, such
as the poor industrial relations prevalent in the industry and the widespread lack of Best
Practices. South Africa has no choice but to transform on a national, industry and
organisational level if the automotive industry is to survive or prosper in the new
millennium. The local automotive industry is unlikely to survive if the country's
national competitiveness is not significantly improved