Following in-depth negotiations with government, the BMW Group will invest an additional R2.2-billion in its Rosslyn plant, the German car manufacturer said on Monday.

"This investment will also trigger many positive spin-offs within our local supplier Network," BMW South Africa managing director Bodo Donauer told a media briefing in Johannesburg.

While the investment would result in Rosslyn's maximum plant capacity increasing from 60 000 to 87 000 units a year, it would also secure BMW car production in South Africa for the foreseeable future, Donauer said.

The South African vehicle market was facing its steepest decline in 15 years.

"But the BMW Group has never shied away from making decisions for the future in difficult times," he said, explaining that BMW had announced it was building its biggest production facility, Plant Dingolfing in Germany, in the middle of an oil crisis some 35 years ago.

"At this time, Germany's fancy motorways were filled with bicycles. This decision follows a similar pattern."

He said he was convinced that an announcement of this magnitude, during the worst known crisis the South African automotive industry had faced, sent a positive message to the company's staff about the long-term sustainability of the Rosslyn plant.

"It also sends a positive message about the future of this country, as a whole," Donauer said.

He said while the Automotive Production and Development Programme (APDP) had not been finalised, BMW's latest announcement had been made possible by willingness from government to remain flexible to the needs of the automotive industry.

"I am happy to report that we have received written commitment from the department of trade and industry (the dti) confirming that our R2.2-billion investment will be honoured under the APDP," he said.

"This commitment, along with the clear APDP framework which government has decided on, gives us the necessary confidence to make this announcement now."

Donauer was hopeful that the decision would be the catalyst for a quick finalisation of the APDP decision process.

"The sooner full clarity is obtained on all outstanding issues, the better for the entire automotive industry and its future investment plans.

"This country has faced so many significant hardships in the past, and solved them all in a relatively pain-free way," he added.

He said he was "completely positive that the comparatively small issue of APDP finalisation would be easily overcome".

Donauer said BMW had experienced first-hand that the dti was willing to support the entire automotive industry.

"However this willingness seems to be overshadowed by the many hurdles encountered in creating a programme that suits all industry players' needs," he said.

However, Donauer believed it was possible for all players ? the manufacturers, suppliers and government ? to conclude negotiations in a unified effort.

"In the process the automotive industry will be able to concentrate on its core business of maintaining and growing operations.

"This, in turn, will allow the industry to fully support government's call to sustain and create high-quality jobs," he said.