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MarketWatch
June 2001

ASSEMBLY CHANGE

Nissan SA has announced that it will change its Nissan Diesel assembly operation in Rosslyn from completely knocked down kits to a semi-knocked down assembly process.

As a result of the MIDP programme, South Africa agreed to reduce import duty on fully imported vehicles to 20% in 2001 from 40% in 1995. In addition, in terms of trade agreements with the European Union (EU), South Africa has granted a preferential 5% reduction off the normal tariff on vehicles imported from Europe.

"It is clear that CKD assembly of medium and heavy commercial vehicles does not have a future and we have decided to follow the majority of other brands in South Africa and move to a lower level of assembly," says Mike Whitfield, executive vice president of marketing at Nissan SA.