The government is finalising the motor industry development policy framework which seeks to push capacity utilisation of car assemblers to 70 percent as well as protecting them from unfair competition from grey imports.
A motor industry policy framework has been the missing link in ensuring local car assemblers operate viably considering the continued importation of second hand cars which have flooded the market.
The policy will also enable the manufacturing of motor vehicle components locally which dovetails with the SADC Industrialisation Agenda as well as the ZIM ASSET economic blue-print which places emphasis on value-chains.
Thus the re-opening of the Willowvale Motor Plant has cast hope for reduction of imports and unnecessary foreign currency outflows.
In celebration of this public private partnership, the Minister of Industry and Commerce Dr Mike Bimha pledged government will continue to improve the ease of doing business as well as addressing challenges facing the local car assemblers.
The joint venture partnership which has seen the re-opening of Willovale Motor Industry is anticipated to create over 5000 jobs for the country’s citizens and government has committed to put in place measures to reduce production costs.
Willowvale Motor Industry will now be assembling a range a of cars including double and single cabs and sedans.
One unit cost for a pick-up is between US$17 000 to US$22 000 which is arguably reasonable considering low disposable incomes obtaining in the market, hence the need for financial institutions to support the initiative for sustainability.