Nissan plans to build a new pick-up at its South African plant in Rosslyn, near Pretoria starting in 2018 according to Nissan South Africa's managing director, Mike Whitfield. Nissan said the addition will double production from the facility from the current 40,000 units to around 80,000 units as the model comes on line. Nissan is expanding to capitalise on future demand for new vehicles on the continent and in response to the South African government's pledge this week of continued support through its current auto manufacturing incentive scheme. "Like any investment decision there are a number of key milestones, but we are moving forward," Whitfield said. "It would be a new product with a lot more potential in Africa."
Significance: The South African government's Department of Trade and Industry said this week it will support and amend its current incentive programme intended to boost local investment in the auto industry. The scheme will be extended beyond the current timeframe of 2020, while the production threshold to qualify for benefits would fall to 10,000 vehicles a year next year. Whitfield clarified, "The fact that they've clearly stated there will be a policy after 2020, that they will work with the industry in 2016 to formulate the next phase of the auto policy, is critical... You wouldn't be able to make investment decisions otherwise." "Although the lower production threshold made it easier for new entrants to start making vehicles in South Africa, scale was still a major driver of profitability," Whitfield said. Nissan produces the NP200 half-tonne pick-up and NP300 one-tonne Hardbody at its Rosslyn assembly plant. "The company planned to eventually reach the factory's full capacity of about 100 000 vehicles a year on a two-shift basis," Whitfield said.
