T Mbeki: Mercedes Benz C-Class model launch

6 September 2007

Programme Director,
Minister of Trade and Industry, Mandisi Mpahlwa,
Cabinet Ministers,
Premier of the Eastern Cape, Nosimo Balindlela,
Professor Schrempp,
Chairperson of Daimler Chrysler SA, Dr Niefer,
The Chief Operating Officer, Mr Rainer Schmueckle,
Comrade workers and trade union leaders,
Distinguished guests,
Ladies and gentlemen,

I am honoured to be part of this official opening of the new plant for the
production of Mercedes Benz W 204 C-Class series, held in the city of East
London, one of the important economic nodes in our country which is now famous
for its manufacture of top class vehicles. Let me take this opportunity to
congratulate Daimler Chrysler for investing in this region and in particular,
in the city of East London.

Today's event also signifies the important partnership that exists between
business and government and the role that business is playing in the economic
development of our country. We are glad that Daimler Chrysler understands and
is committed to this partnership and plays a critical role in the social and
economic life of our country.

The automotive industry is one of the key growth sectors that has
contributed to the overall economic growth of South Africa. With its 7,53%
contribution to the country's Gross Domestic Product (GDP) in 2006, it is
self-evident that this sector will play significant role in ensuring that South
Africa achieves the higher rates of economic growth we need. Indeed, Daimler
Chrysler has been part of the process of ensuring that this region becomes a
major manufacturing industry, especially through increased investment as well
as skills development.

The Mercedes Benz C Class model produced here has become a symbol of
reliability the world over and all South Africans are proud that a vehicle of
such high quality is the product of their labour. I am told that those who
drive the Mercedes Benz C Class model say it is a luxury car that exudes real
class and in terms of class and character is up there with the very best on the
international stage.

I have no reason not to believe them because the class and elegance that
this vehicle represents are the qualities that communicate a message that we
are capable, as South Africans, to produce products of the highest quality. The
fact that this car has been assembled here in our country gives us South
Africans reason to be proud. We are even more proud of the fact that the final
products from this site will be distributed to different parts of the world,
which will certainly redound to our reputation as an internationally
competitive nation.

We are indeed very happy that Daimler Chrysler is committed to investing in
South Africa. We are of the further view that as a company you have also seen
the benefits of investing in our country and you will continue to do so well
into the future. We are confident that we remain partners for the benefit of
all our people and for our economic development.

As a country, we are proud of the quality of products that have been
developed from this plant and we are confident that they are some of the best
in the international markets. As we know, increased investment not only
contributes to the objectives of growth and development which our government
seeks to achieve. It also creates employment opportunities and thus contributes
to poverty eradication. The shortage of skills remains a big challenge for all
of us.

To this end, government, together with the private sector and the
universities, have put in place a comprehensive plan that should help us build
the necessary skills-base in all critical areas needed by our economy. Through
the Joint Initiative on Priority Skills Acquisition (Jipsa) we are all
committed to fast-track the process of skilling the South African workforce for
faster economic growth and social development.

We are of course making other interventions in the area of education and
training to address the skills constraint in our economy and society. In this
context we welcome the investment that Daimler Chrysler has made towards skills
development by investing monies in skills training and development and
improving the skills of your employees so that they will be relevant for the
21st Century challenges that face the industry and the country.

I am also told that you have invested about R1,9 billion on improving your
infrastructure, constructing new buildings, developing your technologies and
investing in new tools as well as new state of the art equipment. I believe you
are also working hard in ensuring that your workplace is safe for your
employees. I am aware that the role of Daimler Chrysler South Africa also does
not just end at running a profitable business enterprise in an effective and
productive manner, but that you are also playing an important Corporate Social
Investor, by ensuring that you support social investment in your immediate
community through your initiatives in education and health.

We look forward to the continuation of the healthy and mutually beneficial
relationship between ourselves as government and the private sector as
demonstrated by Daimler Chrysler. This relationship underlines the importance
of private-public-partnerships that must be strengthened and nurtured.

Chairperson,

Government has since 2005 been reviewing the Motor Industry Development
Programme (MIDP). As you know, one of the objectives of this review has been to
evaluate the performance of the industry against the MIDP's stated objectives,
i.e. making vehicles more affordable, growing exports, rationalising production
platforms and stabilising and growing employment. At the same time, the thrust
of this review is to ensure that our automotive industry remains globally
competitive and is integrated into the global value chain.

I am aware of the fact that you like the rest of the automobile industry,
are concerned that we should complete this review as soon as possible. Our
government is completely at one with you in this regard. As you know, our
Minister of Trade and Industry who is here with us, has publicly indicated that
we are determined to complete, by December, the process to outline a support
programme for the industry to be implemented after the current MIDP expires in
2012.

It is clear that in determining the level of support, the future programme
will have to respond to the needs of the industry with regard to
competitiveness, localisation and transformation. We will arrive at these
decisions after comprehensive and sustained discussions that we are undertaking
with the automobile industry as a whole. Earlier I said that it is self-evident
that the automobile sector will play significant role in ensuring that South
Africa achieves the higher rates of economic growth we need.

Let me go beyond this. Our government has formally taken the decision that
in terms of our industrial policy, about which I will make some remarks
shortly, we must encourage and support the automobile sector as one of the
leaders in our process of radical expansion of our manufacturing sector. I say
this to confirm that we are as keenly interested as you are to resolve all
matters that relate to the MIDP as quickly as possible. But I must also say
that in this regard, together we must ensure that we do not expose ourselves to
any challenges in terms of World Trade Organisation (WTO) rules and
agreements.

Our government will therefore honour its obligation consistently to engage
all our relevant social partners to produce an agreement that meets our common
desire to ensure the further and rapid expansion of the automobile sector.

Chairperson,

The economic restructuring that is taking place currently in South Africa
through the introduction of the National Industrial Policy Framework seeks to
respond to various economic and industrial policy imperatives. It also seeks to
address a weakness that exists in our economy, which, among other things, has
resulted in the current balance of payments deficit. Part of our vision of the
National Industrial Policy Framework (NIPF), is to have an industrialisation
trajectory that is responsive to:

* the intensification of South Africa's industrialisation process and
movement towards a knowledge economy
* the provision by domestic manufacturers of the capital goods that our growing
economy needs and will continue to demand
* the promotion of more labour-absorbing industrial sectors, with an emphasis
on tradable labour-absorbing goods and services and economic linkages that
catalyse employment creation
* the promotion of a broader based industrialisation path that is characterised
by greater levels of participation of historically disadvantaged people and
marginalised regions in the mainstream of the industrial economy.

We are determined to pursue all these objectives, which are an integral part
of the Accelerated and Shared Growth Initiative for South Africa (AsgiSA). We
know that in this regard we have no choice but to succeed. This is because our
Industrial Policy Framework and its Action Plan are critically important to the
acceleration of our sustained advance towards overcoming the challenge of
unemployment and poverty and creating a better life for all our people.

I am indeed very pleased to be here today to join the management and workers
at this important plant as we, together, officially commission the additional
production capacity that has enabled Daimler Chrysler South Africa to expand
its output and export to new markets, especially the United States.

We are proud to have you as one of our leading corporate citizens and assure
you of the commitment of our government to work with you as we, again together
and in partnership, continue to respond to the challenge of building a winning
nation.

I am privileged to wish Daimler Chrysler South Africa success as it grows
from strength to strength, driven by the determination to succeed and
confidence in our country represented by the new and additional investment we
celebrate today.

Thank you.

Issued by: The Presidency
6 September 2007
Source: SAPA