BEE Corporate News Report

Ford and Gauteng launch R100m initiative to develop black-owned suppliers

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The black entrepreneurs would also form joint-venture partnerships with Ford’s Tier 1 component suppliers to maximise the efficiency of the incubator programme. The initiative forms part of FMCSA R3,4-billion investment to develop a high-volume export programme for the new-generation Ford Ranger vehicle, expected to be launched later this year.

The new production simulator facility would be used to improve the assembly process capabilities of current and future Ford employees for the mass production of the new T6 model. Once production is moved to Ford’s assembly line, the simulator would be used as a testing and training facility for engineering students.

FMCSA CEO Jeffery Nemeth said that the multinational automaker had the greatest confidence in South Africa’s rapidly developing motor industry and the ability of its workforce, which was why it had chosen the country to form part of its new export programme.

Ford’s new T6 Ranger would also be manufactured in Thailand and Argentina and exported to 180 countries across the globe, of which, South Africa would supply a 100 countries. Nemeth said that it was anticipated that Ford’s investment programme would contribute R79-billion to the Gauteng economy over the next 15 years and generate almost 700 000 direct and indirect employment opportunities.

Newly appointed Gauteng economic development MEC Qedani Mahlangu said the province’s partnership with Ford was in line with South Africa’s New Growth Path (NGP), which aimed to create an additional five-million new jobs in the next ten years. She noted that the national and Gauteng governments have identified the automotive industry as one of the key sectors to stimulate economic activity and to generate additional employment.

However, the MEC pointed out that significant human resource capacity and skills had been lost within the sector, which made skills development initiatives and public-private partnerships essential to restore the industry to “its former glory.”

Further, Mahlungu emphasised that similar programmes were needed, not only in the automotive industry, but also in other sectors in the province and the rest of South Africa. “The provincial government is committed to deal with issues that inhibits or inconvenience multinational and local companies to do business in the province. “We realise that investments, such as the one here today, is needed to create wealth and to produce dividends that will see the eradication of poverty,” she concluded.

BBBEE - Gloves Off. Lets tell the truth!

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So what should be done to improve this marketing and sales dilemma? The first step towards improving the sales of the product is to change the wrapper. Replace it with a "no frills" practical wrapper that carries an honest working instruction. "Consumers should understand that the success of this product depends entirely on loyalty, honesty and dedication to hard work. Any sense of entitlement will result in immediate product failure!"

The next thing to redesign and improve on is the actual product. Discard the processed junk on the inside and replace it with a natural organic product which will deliver genuine value to the consumer. Politicians and business people have done and continue to manipulate the BBBEE policy to the detriment of the general population. It has been conclusively proved that only certain elite and politically well connected people have become the beneficiaries. How about a couple of Mauritians as beneficiaries? I wonder how they qualify as "previously disadvantaged South Africans?" South African politicians spend large amounts of money and time visiting other countries around the world. Surely, if they paid any attention, they would understand that government intervention is a recipe for failure? The truth is that they don't care. They are in it for themselves and the population is left to scratch for a living. The present government has enforced BBBEE and it may look politically correct, but it is abundantly clear that the previously disadvantaged people have NOT shared in any of the newly accumulated wealth.

It is strange that there is very little evidence of the general population demanding BBEEE. But why would anyone demand something which has no benefit to them? It is just a government initiative which has failed and it needs to be urgently changed. Demanding entitlement, blaming others and laziness are not elements of success. As hard as that be to accept, for many of our population, there is NO substitute for loyalty, honesty and dedication to hard work. Any sense of entitlement will result in immediate product failure!

Market forces are driven by human nature and are neither political nor racist. For South Africa to have a healthy economy, the market forces must be allowed to work naturally. Human endeavor will be rewarded. However, those simple facts have to be fully understood and embraced by everyone who wants to share in a successful country.

Extracted from a report by Moneyweb