Nissan SA bids to produce bakkie

Nissan South Africa is bidding for a contract to produce a new bakkie model in South Africa, which if successful is expected to result in an investment of about R200 million in its production plant in Rosslyn near Pretoria. Qedani Mahlangu, the Gauteng economic development MEC, said on Tuesday Nissan SA would be travelling overseas to bid for this international contract to produce a new generation pick-up truck. Mahlangu told an Automotive Industry Development Centre (AIDC) conference in Boksburg the Gauteng provincial government had given Nissan SA a letter of support for its bid. Veralda Schmidt, a Nissan SA spokeswoman, said the Nissan SA managing director Mike Whitfield had confirmed the South African company was bidding to be among the Nissan plants that were awarded production contracts for a new Nissan product.

Schmidt said the Gauteng provincial government’s commitment in working with Nissan SA in support of its bid was highly appreciated because it would certainly make a positive impact on the automotive sector in Gauteng and South Africa. However, Schmidt said the discussions with their parent company Nissan Motor Company of Japan were “still in the early stages and no concrete confirmations have been announced yet”. Schmidt declined to comment on the investment Nissan SA would have to make in its plant if it was awarded the contract, what other plants were bidding for the contracts to produce this vehicle, the anticipated volumes of the vehicle that would be produced and markets serviced. Whitfield said in July Nissan South Africa had aggressive vehicle sales growth targets in Africa in line with its plans to double production at its plant in Rosslyn near Pretoria to 100 000 units a year by 2015 while still continuing with exports to Europe, Russia and Turkey.

He said Nissan Motor Company had an extensive product plan in terms of its new mid-term strategy, Nissan Power 88, which was launched in June. In terms of this strategy, Nissan would launch 51 new models between now and 2016 with Africa a core part of the new product rollout and 12 new products launched into this market. These models include the new Micra, new 4X4 crossover Juke and new B-segment sedan Almera. Nissan aimed to increase its market share in Africa to double digits by 2016 from 6.8 percent today. But Whitfield also declined then to comment on whether any of the 12 new models for Africa would be produced in South Africa but confirmed Nissan SA would be re-entering the taxi market in about a year and a half. Whitfield added that the future direction of Nissan’s Rosslyn plant was towards a reduction in its production platforms from five to two but with substantially higher volumes.