Business / Auto China

I'll supply the truck, you supply the parts

By Xing Zhigang and Li Jiabao (China Daily) Updated: 2014-05-27 07:12

The Chinese business mind-set is "easier", Parry said. "They don't have hordes of protocols and are more flexible. With cultural differences, we have bridged that a lot along the way."

The company plans to expand its product inventories, such as including smaller and bigger trucks, to build the brand, he said.

I'll supply the truck, you supply the parts
African success revs for auto firm

I'll supply the truck, you supply the parts
Truck makers pin hopes on urbanization amid slump
David Gao, Ever Star's regional sales manager, said, "The suggestion comes from the local markets, and the final decisions on introducing a new model or variety into the market will be made by the board of the joint venture, which usually takes about six months."

Despite Ever Star's successes, the company said it continues to face challenges on several fronts.

"Labor legislation in South Africa is a big thing, and strikes last year affected us for seven weeks," Parry said. "That's why we don't want to manufacture the trucks and parts locally. Also, the semi-knocked-down model will bring us a 20 percent tax rebate owing to the use of local people. We don't want local manufacturing because there are too many external factors, (including) strikes and the cost of labor."

Wages are always increasing, and they will rise about 10 percent this year, he said.

"We pay an average salary on the line of 8,000 rand ($770), which is a lot. We also send five or six employees every year to China for training, which is very expensive. Labor is cheaper in China. Also it's easier to employ people."

Genis said: "The biggest problem for Chinese companies is getting skilled locals who understand how to set up a company, how to import parts into South Africa, as well as all the logistical things in the domestic market."

Hot Topics

Editor's Picks
...
...