Business Day (Johannesburg)

South Africa: Mitsubishi's Local Assembly Plant Helps to Cut Costs

Johannesburg — MITSUBISHI Motors SA says assembling Triton bakkies at its new R200m South African plant yields both cost-saving gains and empowerment benefits.

Mitsubishi spokesman Edward Makwana said on Monday the car maker's Triton Double Cab and new Triton Club Cab would source 48% of their components and parts from local suppliers .

Producing these four-wheel-drive bakkies locally made it easier to adapt vehicle specifications to South African conditions. Triton Double Cabs, which used to be imported from Thailand, would be fitted here with new suspensions that ensured gravel-road stability, Makwana said.

Local assembly would cut the costs of importing Triton Double Cabs to a "certain extent", he said, brushing aside concerns about the effects of global financial meltdown and sluggish local vehicle sales.

"We are not perturbed by this." But Makwana said the company acknowledged "tough times". The difficulties would "quieten down" at some point and the market eventually get better.

Makwana said Triton bakkies, which might be exported to southern African countries some time next year, had elicited some demand -- mostly from entrepreneurs or contractors and general bakkie enthusiasts.

The local production of Triton Double Cabs and Triton Club Cabs came to fruition after Mercedes-Benz SA invested R200m in a new manufacturing line, unveiled last week, for its subsidiary, Mitsubishi.

Makwana said 200 bakkies had been built at a new plant. During the ramp-up phase of the locally built Tritons, 2000 Double Cab and Club Cab bakkies would be built. The production line has the capacity to churn out 5000 units a year.

Mercedes-Benz SA chairman Hansgeorg Niefer said last week the new plant and equipment investment was applied for the full refurbishment of the Mitsubishi manufacturing facilities and new systems, all of which had accelerated the production timeline of the Triton bakkies .

The equipment used in the new manufacturing line had been designed and manufactured by local companies .

Numerous small and medium enterprises were employed for infrastructure changes and upgrades such as conveyor modifications, relocation of warehouses, revised racking and lighting upgrades.

"This is rather a defining moment that reminds us about the manufacturing of the legendary Mitsubishi Colt in 1993, which was suggested to Mitsubishi Motors Corporation and our Daimler shareholders by then chairman of MBSA Christoph Köpke, and which resulted in MBSA being granted the franchise to build the vehicle," Niefer said.

"In late 1994, the Colt pickup became the first light commercial vehicle in the MBSA stable."

Niefer said that eight Mitsubishi Motors SA employees had been sent to Thailand for comprehensive training and would pass on the knowledge to their local teams. "These employees ... have done a brilliant job," he said.


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