Review information for The South African Motor Industry (The South African motor industry originally emerged through the...

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Review information for The SouthAfrican Motor Industry (The South Africanmotor industry originally emerged through the assembly ofknock-down kits of parts from abroad. Over the years, thesedeveloped into fully fledged manufacturers. This was largely due tothe active industrial policies of the apartheid government (inpower from 1948 to 1994), which aggressively promoted importsubstitution. Under apartheid, racial discrimination in thecommunities was mirrored by racial Fordism: blacks were largelycondemned to poorly paid unskilled work. This led to manyindustries relying on cheap labor to solve systemically imposedinefficiencies.

In the 1970s, a wave of unionization of blacks took place,eclipsing the older, white- dominated trade unions. By the early1980s, the new (“independent”) unions became increasingly outspokenin opposing the apartheid order. Mass resistance in communities wasparalleled by an upsurge in strike action. In the Mercedes-Benzplant in East London, the resistance became so intense that largeareas of the factory were rendered no-go areas for management.Finally a grouping of workers occupied the plant, damaginginventories and machinery.

The close of the apartheid era alleviated much of the underlyingtension; at the same time, managers began to forge cooperativedeals with unions. At Mercedes-Benz, these included very muchbetter pay and working conditions, new opportunities forup-skilling and career advancement and a range of participativemechanisms, giving workers a real say in the process of production.Today, the plant is one of the most productive car plants in theworld, and its products have the fewest defects of anyMercedes-Benz plant. While previously the plant was marginal, andby the late 1980s under threat of closure, today it is an integralpart of the Mercedes-Benz worldwide production network.)case 3.1 then answer the following questions in accordance with thecriteria below (Write 150 word minimum for each question, pointswill be deducted if each question does not meet the minimum150-word required for each question):

1.       Summarize the study

2.       What lessons does theMercedes-Benz East London plant hold for HR managers worldwide?

3.       Is the experience ofMercedes-Benz in East London relevant to other industries.

4.       If yes, please explain.If not, why not, please explain.

Answer & Explanation Solved by verified expert
4.2 Ratings (612 Votes)
1 As the summary based on several points and information which are Market Overview The automotive sector in South Africa is the mainstay of the national industrial base and accounts for 69 of GDP 44 manufacturing and 25 retail South Africa improved its global ranking to 21st 24th in 2014 in the world with a market share of 068 Exports to NAFTA at 166 billion declined from the 204 billion exported in 2016 due to the appreciation of the rand against the US dollar in 2017Another reason for the decline in automotive exports could mainly be attributed to the decline in catalytic converter exports and vehicle exports to the United States in 2017 Vehicle exports to the United States at 40414 units were down by 7213 units from the 47627 units exported in 2016 Exports comprised mainly of the lefthanddrive BMW 3Series as well as smaller volumes of the new generation MercedesBenz CClass and the Ford Ranger The BMW 3series of which the main export destination has been the US market has reached the end of its lifecycle and will be replaced by the X3 model The X3 model will not be exported from South Africa to the United States in future as this model is also being manufactured in the United States The automotive industry represents an increasingly important strategic and catalytic role in the overall South African economy by impacting directly on many important aspects such as contribution to GDP employment skills development economic linkages technology and innovation and making significant contributions to the fiscus through taxes and substantial foreign direct investment Total automotive revenue in the ambit of the automotive business sphere in South Africa amounted to over 42 billion in 2017 Exports of automotive products in 2017 accounted for 13 billion equating to 139 of total South African exports However the automotive export revenue declined in 2017 due to a stronger rand exchange rate and the time effect of major new model introductions The United States and South Africa have expanded bilateral trade significantly under AGOA with the growth in automotive imports from the United States up to 2017 at 361 in nominal rand value terms proportionally much higher than the growth in South African automotive exports to the United States at 3001 The winwin dispensation for both South Africa and the United States under AGOA builds goodwill contributes positively to sustaining employment in the United States and South African supplier and vehicle manufacturing industries and results in regional development    See Answer
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