FORD Motor Company CEO Alan Mulally is likely to reiterate his company’s commitment to South Africa when he speaks at the Johannesburg International Motor Show on Wednesday.

This would contrast sharply with the stance adopted by BMW, which in October threatened not to expand

further in South Africa due to labour instability.

However, BMW has since met Trade and Industry Minister Rob Davies in a bid to iron out the matter. It maintains it remains committed to its major manufacturing production facilities in the country.

The National Association of Automobile Manufacturers of South Africa (Numsa) said on Tuesday that investment in South Africa’s vehicle industry would continue as multinational companies work more closely with the government and labour to ensure stability in the motor industry.

Ford confirmed on Tuesday that Mr Mulally had arrived in South Africa ahead of the Johannesburg International Motor Show to check up on the company’s substantial R3.4bn investment in the country.

Ford is banking on growing its export pipeline from its manufacturing plants in Pretoria and Port Elizabeth and a source close to the motor show said it was expected that his message, when he speaks at the show, would be about further entrenching the company’s interests in South Africa, rather than disinvesting.

"Labour stability should prevail now that there is a three-year agreement. A number of international companies are invested in South Africa and no doubt, this will continue," said National Association of Automobile Manufacturers (Naamsa) director Nico Vermeulen on Tuesday.

A three-year agreement between unions and vehicle assemblers was signed in September after a debilitating strike that knocked the export market by as much as 75%, while the retail motor industry on Tuesday signed off on its three-year settlement after four weeks of strike action.

Richard Leiter, MD of FAW South Africa — which is one of China’s leading global manufacturers of passenger cars, trucks, and buses and which recently invested R600m in South Africa — said he saw South Africa as an international portal for the manufacture and export of vehicles and components.

Many key players in the automotive industry already use South Africa as a base to source components and assemble vehicles for both local and international markets.

"This sector has also been identified as a key growth area by the government and I believe it is quite apparent that the motor trade industry is going to have a large part to play in growing the manufacturing sector."

Mr Leiter said South Africa had, unfortunately, been plagued by labour disputes for some time already and labour threats were thus a "day-to-day concern" in this industry. "However, we are positive that a healthy balance will be reached and that the way forward will be beneficial to all parties concerned."

The automotive manufacturing sector makes up 4.5% of the national gross domestic product (GDP), while the retail aftermarket accounts for 3% of the South African GDP — the whole of the automotive sector represents a substantial 7.5% of GDP, which is a significant portion of a developing economy.