STATE-owned lender Industrial Development Corporation has leapt to the defence of a Chinese company facing boycott threats from the taxi industry.
Sowetan broke the story of taxi operators' uneasiness with Beijing Automotive Work SA (Bawsa) products last week .
Bawsa announced this week that it would drop the unpopular Inyathi minibus for a new model known as 009, which is similar to the popular Toyota Quantum.
Bawsa launched Inyathi at a plant on the East Rand recently and Economic Development Minister Ebrahim Patel was present to show support.
The 009 model was produced specifically for the South African market.
"The IDC and its equity partners realise the importance of a strong after-sales division and network to support the 009 vehicles," IDC spokesman Mandla Mpangase said. "Hence, Bawsa has focused on developing a strategy to ensure effective after-sales support, which includes a 100000km warranty, a 200000km service plan and a countrywide network of established dealerships," he said.
The taxi industry had raised concerns over Bawsa's after-sales service and the quality of the Inyathi minibuses.
Meanwhile, the South African National Taxi Council (Santaco) requested that the quality of the vehicles be improved and that they be given a stake in the R200-million plant in Springs, Gauteng, which aims to create 469 direct jobs at full production capacity.
Mpangase yesterday released a statement saying they have smoked a peace pipe with Santaco.
The plant is the first phase of the project and will only supply the local market.
The second phase will be ready in 2015 and will target the rest of the Southern Africa Development Community countries.
The National Taxi Alliance (NTA) has refused to have any association with the Bawsa.
NTA secretary general Alpheus Mlalazi said the alliance was never invited to the talks.
"We will still black-list all Bawsa products until there's proof that they are durable, safe and comfortable for our passengers," said Mlalazi,
National Regulator for Compulsory Specifications spokesman Daniel Ramarumo said the regulator's mandate did not cover the quality of vehicles.
"The safety and environmental protection requirements as covered in the automotive compulsory specifications do not address quality requirements," Ramarumo said.
"Hence the compliance of a motor vehicle with the relevant legislation may not be determined by the standard of quality associated."
IDC stands up for China firm
STATE-owned lender Industrial Development Corporation has leapt to the defence of a Chinese company facing boycott threats from the taxi industry.
Sowetan broke the story of taxi operators' uneasiness with Beijing Automotive Work SA (Bawsa) products last week .
Bawsa announced this week that it would drop the unpopular Inyathi minibus for a new model known as 009, which is similar to the popular Toyota Quantum.
Bawsa launched Inyathi at a plant on the East Rand recently and Economic Development Minister Ebrahim Patel was present to show support.
The 009 model was produced specifically for the South African market.
"The IDC and its equity partners realise the importance of a strong after-sales division and network to support the 009 vehicles," IDC spokesman Mandla Mpangase said. "Hence, Bawsa has focused on developing a strategy to ensure effective after-sales support, which includes a 100000km warranty, a 200000km service plan and a countrywide network of established dealerships," he said.
The taxi industry had raised concerns over Bawsa's after-sales service and the quality of the Inyathi minibuses.
Meanwhile, the South African National Taxi Council (Santaco) requested that the quality of the vehicles be improved and that they be given a stake in the R200-million plant in Springs, Gauteng, which aims to create 469 direct jobs at full production capacity.
Mpangase yesterday released a statement saying they have smoked a peace pipe with Santaco.
The plant is the first phase of the project and will only supply the local market.
The second phase will be ready in 2015 and will target the rest of the Southern Africa Development Community countries.
The National Taxi Alliance (NTA) has refused to have any association with the Bawsa.
NTA secretary general Alpheus Mlalazi said the alliance was never invited to the talks.
"We will still black-list all Bawsa products until there's proof that they are durable, safe and comfortable for our passengers," said Mlalazi,
National Regulator for Compulsory Specifications spokesman Daniel Ramarumo said the regulator's mandate did not cover the quality of vehicles.
"The safety and environmental protection requirements as covered in the automotive compulsory specifications do not address quality requirements," Ramarumo said.
"Hence the compliance of a motor vehicle with the relevant legislation may not be determined by the standard of quality associated."
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