The investment is expected to create direct and indirect jobs due to increased production of the Ford Ranger Model according to Communications Minister Mmamoloko Kubayi-Ngubane.
Earlier this month, the company announced its plans to expand production capacity at its South African plant in order to meet growing demand.
Briefing reporters following Cabinet’s fortnightly meeting, the Minister said investments like these affirm government’s work in growing the South African economy and addressing the challenge of unemployment.
Unlocking private investments
“Through government’s R7.8 billion incentive scheme in Automotive Production and Development Programme, R28.5 billion private investments have been unlocked. These include the announcement by Toyota to manufacture their new Toyota Hilux and Fortuner models as part of R6.1 billion investment,” said Minister Kubayi-Ngubane at the briefing held in Cape Town.
Other similar investments include BMW’s plans to construct a R6 billion state-of-the-art body shop. Meanwhile, the Beijing Automobile International Corporation plans to invest R11 billion in an automotive manufacturing plant in South Africa.
Launched in September 2008, the objective of the programme is to stimulate expansion of automotive vehicle production with associated deepening of the components industry.