Chinese/SA auto manufacturing venture splutters

Since the start of operations at the R11bn Beijing Automotive Industry Corporation (Baic) auto manufacturing plant at the Coega Special Economic Zone in Gqeberha six years ago, the plant has assembled just 300 units – a performance described by industry experts as a ‘dismal return on investment’. Launched with pomp and ceremony by Chinese President Xi Jinping and Cyril Ramaphosa in 2018, the project was then billed as China's largest investment outside Europe. City Press reports that it is a joint venture between Baic which holds a 65% stake and the Industrial Development Corporation (IDC) with the remaining 35%. All targets set at the inception of the project – from the actual construction of the plant in 2016 to the start of production of vehicles in 2018 – have been missed. The company has attributed this dismal performance to work stoppages caused by labour disputes with disgruntled SMMEs and the advent of Covid-19.

Full City Press report