Local component manufacturers are feeling the pinch because of import parity pricing policies, which mean raw material suppliers are charging global rates and local companies are thus paying more.

Local component manufacturers are feeling the pinch because of import parity pricing policies, which mean raw material suppliers are charging global rates and local companies are thus paying more.

According to , the executive director of the National Association of Automotive Component and Allied Manufacturers, Clive Williams, said suppliers' practice of charging dollar prices "is killing the viability of local manufacturers.

"We have a sad situation where raw material manufacturers are exporting their products to America, Europe and Japan. They are being converted into car components and reimported into South Africa cheaper than we can make them locally.

"Our people are paying a premium for the raw materials over and above what the guys in the other countries are paying," he said. "All the raw material manufacturers are monopolies,” Williams said. He added the department of trade and industry agreed that the situation had to be worked out.

The value of component exports increased by 47,6 per cent to R18,6 billion in 2001. It was worth R12,6 billion in 2000. It was expected to have risen to R24,5 billion last year.

Original article from Car