Vehicle manufacturer BMW South Africa (SA) has assured government that it has no intention of discontinuing its operations in South Africa, despite having decided not to expand its local operations further, Trade and Industry Minister Dr Rob Davies said on Wednesday.

Speaking at a media briefing in Pretoria, Davies said he would meet with BMW SA representatives on Wednesday afternoon,following his receipt of a letter from the company clarifying its position.

“I think BMW was concerned that what they meant, when saying that they would freeze expansion in South Africa, was not correctly reported,” the Minister noted.

He added that the vehicle manufacturer did, however, feel that it had lost an opportunity to compete for production of a new model as a result of the recent automotive sector strikes.

“But the strikes are now over and a three-year wage agreement has been concluded,” Davies said, adding that he would speak to BMW SA’s management against this background and would attempt to find ways in which government could work with the manufacturer to improve the investment climate in South Africa.

“We will also see whether there is anything we can do around the specific new vehicle project that the company mentioned,” he said.

The Minister further said he had also met with a delegation from the vehicle manufacturer’s management team, in Germany, during the strike period, reiterating that BMW would be in South Africa for the “long haul”.