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In the fast changing world, the success of engineering education depends not only on sound engineering knowledge but also on the ability to apply it in practice from the moment young graduates enter real industry. In order to be successful in industry, learners need interaction with in the real industrial environment from the beginning of their studies. The importance of close links between engineering educational programmes and industry is shown in the example of industry-university collaboration between the Nelson Mandela Metropolitan University (NMMU) and General Motors South Africa (GMSA). The local automotive industry, and GMSA in particular, has been supporting the engineering programmes at NMMU for decades. However, with the establishment of a Bachelor degree programme in Mechatronics in 2005, GMSA has decided to play an even more prominent role as this was the first such degree programme in the Eastern Cape. This initiative has resulted in the establishment of the Chair of Mechatronics, fully sponsored by GMSA. Over the years, this industry-university partnership became an important platform providing a vital link between theory and practice in engineering education. The results of this partnership can be seen in an increased number of graduate and post-graduate students’ projects being based on real industrial cases provided by GMSA, reflecting the latest developments and trends in engineering. Working with engineers on solving industrial problems, students gain valuable experience in dealing with colleagues, managers and workers. Exposure to the latest technologies strengthens the theory and better prepares graduates for their future careers in industry and commerce. The partnership is also important for GMSA as it increases its competitiveness and facilitates the company’s significant contribution to human capital development, which is very important for the growth of the South African economy and the community at large.