By Ndafadza Madanha
THE Industrial Development Corporation of Zimbabwe (IDCZ) is currently in negotiations with a number of original equipment manufacturers to partner in the assembly of motor vehicles.
IDCZ public relations advisor Derrick Sibanda said the organization had returned its subsidiary Willowvale motor industry to its pre1990 status as a multi contract assembler enabling it to pursue negotiations with OEMs to assemble vehicles locally.
OEM is a company that makes a part or system that is used in another’s company end product.
Willowvale motor industries recently entered into a joint venture with Chinese auto manufacturer BAIC for the assembly of their vehicles locally and the partnership has met with success.
“Willowvale motor industries is now a multi contract assembler and we are negotiating with original equipment manufacturers to assemble vehicles here
“The new joint venture is doing well as the vehicles are assembled locally to meet the conditions of our terrain. During the short period we have sold about 120 vehicles,” said Sibanda.
He said the fruitful conclusion of the OEM will have benefits to the downstream industries.
Sibanda said the imminent finalization of the motoring industry policy by the ministry of Industry and Commerce will help in attracting investors into the sector.
He said the influx of second hand car mainly from Japan had not affected their market which preferred brand new vehicles.
“At one time we were doing all the components. We need the ministry of Industry and Commerce to finalize the policy as this will help in attracting investors. Second hand cars are not an issue with us as our major customer is government and we are grateful for the support in light of the fiscal constraints they are facing”. However the grey exports have affected the downstream industries which used to benefit from the motor assembly sector which would contract them to paint and provide other services”.