I have just finished reading your July edition. I am a little concerned with a statement which has been made in the report concerning Howe Leather. It is stated that production of automotive leather in South Africa receives government subsidies.
We manufacture for the auto industry in SA, and I can assure you we are not subsidised by the government in any way. I think you may have confused government subsidies with the ‘motor industry development programme’ which is in operation in SA and offers exporters, mainly the vehicle OEMs, certain export credits for certain component exports. Leather seat covers in their sewn state qualify for credits, which then can be used to offset the import duty on new vehicles. It is not possible to cash these credits at some government teller, and then use the money as you wish.
To do business in the automotive industry on a global scale, one has to be competitive in the global market. When we quote we are compared to world pricing.
I believe you have given a mis-perception of the auto leather industry in SA, and I feel that maybe you should research our industry a little more and then re-comment.
Tony Walsh
Kolosus Automotive Leathers
