Lauding South Africa’s stable industrial policy over its 50 years of production in Rosslyn, BMW has now hinted that its iconic Pretoria facility will need to gear up with government to cater to the electric craze of the European market.
Important to note, the majority of BMW X3s currently produced in Plant Rosslyn are exported, less than 5% remain in South Africa while the vast majority find homes on the European continent. With mandates to ban all ICE-powered vehicles looming, this would signify a large blow for the production facility unless intervention occurs. In a recent interview with BMW SA head honcho Peter van Binsbergen at their 50 Years an Icon celebrations, we pried at the possibility of Plant Rosslyn adapting to the growing demand for EVs.
His response was straightforward “There will be no EVs yet, we will have to see what customer demand is.” That being said, there is a long-term future that the automaker is looking towards: “We (BMW SA) are working with government with a viable EV strategy.” This is promising news, considering BMW is a significant contributor to monthly exports, frequently ranking in the Top 5. Considering van Binsbergen adds it takes 3 years to retool a facility for a new model and up to 5 years to get all systems functioning optimally (particularly considering that EV production technology is a stranger within our borders), decisions that would need to be implemented by the close of the decade would need considerable legwork now.
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In addition, touching on the topic of if BMW was satisfied with the economic conditions in South Africa, van Binsbergen added that the greatest challenges faced by the automaker are infrastructure, with the unreliable state of electricity and dilapidated conditions of the rail network being top of the list. This all adds strain to the already competitive global automotive manufacturing market which could be a key contributor as to why Mexico now has more affordable labour.
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That being said, BMW SA has been working on an industrial policy for EV manufacturing with South Africa’s Minister of Trade and Industry of South Africa; Ebrahim Patel to “secure production here for the next generation.” With the 50 Years an Icon festivities well underway, the Bavarian automaker wants to ensure they remain relevant for South Africa and abroad to continue chipping away at future milestones.