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TRUCKS FAW AFRICA

n the past 18 years, FAW SA has established itself as a leader in the local commercial vehicle industry, and he company is planning for significant expansion in 2012 and beyond. It is in the process of establishing a new assembly plant in the Eastern Cape and is also increasing the number of dealerships, while continuing to keep training and giving the introduction of new models top priority. The official sod turning ceremony for the new state-of-the-art FAW truck and passenger car plant took place recently at the Coega Industrial Development Zone outside Nelson Mandela Bay in the Eastern Cape. The total investment, which is being financed by FAW China and the China-Africa Development Fund (CADFund), will be approximately R600 million, with R200 million going towards the construction of the plant. The rest of the money will provide the working capital to staff, market and operate the factory, which will be on a par with anything in the world, says FAW SA MD, Richard Leiter. Coega Marketing Manager Ayanda Vilakazi says that FAWs decision to invest in Eastern Cape was prompted by Coegas location, the proximity of the Port of Ngqura, the logistical solutions offered and the support mechanisms offered by Coega. FAWs decision to build the plant in South Africa is significant as it is to date one of the most important investments by a Chinese entity in South Africa. The arrival of FAW in this region adds yet another blue-chip automobile company to the province, the others being Volkswagen, General Motors, Ford and Mercedes Benz, says Vilakazi. The plant will be built on 400 000 square metres of land and is expected to eventually produce 5 000 trucks and 30 000 passenger vehicles annually. Initially the trucks assembly facility will create 500800 jobs, and about the same number will be created when the passenger vehicle division gets underway. According to Leiter the Coega facilty will be the future springboard for

FAW SA MD, Richard Leiter (closest to the camera) signing the deal.

FAW gears up for assembly plant in Eastern Cape Total investment of R600 million Trucks and passenger cars to be manufactured
doing business in the rest of Africa in terms of the distribution of FAW trucks and passenger vehicles. The spin-off effect from the plant will be enormous as we invest money to build our market share both in South Africa and in Africa in general. Eugene van der Berg, FAW National Sales and Marketing Manager, says funds will also be used in South Africa to support a marketing and sales strategy, which is aimed at increasing market share in selected sectors of the truck market in South Africa.

We will also use this cash strength to help us continue expanding our own financing operation, which will be of huge benefit to our customers. We are working hard now to take the biggest share of the market possible. We are not going to set limits on ourselves, and we will make a major impact on the local market in 2012. FAW is currently in the process of fine-tuning its medium model range to cater for specific micro markets in the MCV sector. We have done a lot of research into this sector, and price and payload appear to be the most important features for customers. Our relevant range of vehicles is, therefore, in the process of being adapted to specifically enhance these features, says van der Berg. FAW is making significant strides in the extra-heavy sector as well, with the highlight being the launch of the renowned J6 truck-tractor later this year. Meanwhile FAW reports that 2012 has started with a bang! We are experiencing a record number of inquiries and sales and we are optimistic that this will continue and even improve through 2013 and beyond, concludes van der Berg. THE

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Trucks & Heavy Equipment

March/April 2012