GlobalSupplier - Daimler

28 South Africa
News
Naamsa believes the South African
economy remains in relatively good shape
characterised by sound macro economic
and fiscal fundamentals, including,
significant surpluses on the current
account of the balance of payments, benign
inflationary trends, conservative monetary
and fiscal policies, growth in personal
disposable incomes and scope for further
tax reductions.
For 2001, the industry remained on target
to achieve an improvement in aggregate
sales volumes of around 6,5%.
For 2002, however, based on expectations
of slower growth in the South African
economy and the likelihood of fairly steep
new vehicle price increases in January
(and subsequent quarters) as a result of
continuing exchange rate weakness - the
industry had adopted a more conservative
outlook and current expectations ranged
from a no growth scenario, on the one
hand, to marginal growth in new vehicle
sales of 1,4% during the year ahead.
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4 54 623 545 354 46 3585 254
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November sales. New vehicle sales
reported by Naamsa for November
recorded further encouraging gains, and
at 32 006 units reflected a year on year
improvement of 11% compared to the same
month last year when 28 813 sales had
been recorded.
Naamsa says the increase was helped by
pre-emptive purchases to avoid generally
anticipated sharp new vehicle price
increases early in 2002. November’s new
passenger car sales at 19 865 units
reflected an improvement of 1102 units or
5,9% compared to November 2000.
However, compared to October 2001, an
exceptionally strong month for new car
sales, the November sales reflected a fall of
454 6314
464 3222
932 9875
1860 units or 8,5%.
996 7564
432 9454
396 6842
Sales of new light commercial vehicles,
bakkies and minibuses maintained strong
upward momentum during November, and
at 10 938 units was an improvement
of 2034 units or 22,8% compared to
November last year and a slight
improvement of 54 units or 0,5% compared
to October.
The medium and heavy truck segments
turned in a mixed performance with
a drop of 6,6%, for mediums but a
sharp improvement of 14,3% for heavies
compared to November last year.
Combined commercial vehicle sales in
recent months were at the top end
of industry predictions and suggested
an improvement in fixed investment
sentiment in the South African economy.
As expected, exports for October, the latest
available month, staged a strong surge
of 36,3% compared to September, and
aggregate year-to-date new vehicle exports
are now 57,8% ahead of the corresponding
ten months of last year.
Up to the end of October this year, 78 930
cars have been exported, compared to 47
416 during the same period last year
Job losses. The number of persons
employed by the South African new vehicle
manufacturing industry - comprising seven
major new vehicle manufacturers and
eight specialist commercial vehicle manufacturers
- dropped by 210 compared with
the end of September last year to a total
in the last pay week of September 2001 of
32 488.
However, Naamsa said industry
employment numbers have been relatively
stable and at current levels continue to
be modestly ahead of the average monthly
employment level for the 2000 calendar
year of 32 280 jobs.
Three major manufacturers, including
DCSA, now work on a multi-shift basis to
produce cars for export markets while the
balance of the industry tends to operate
11%
Tough year predicted for 2002
South Africa’s vehicle sales have shown an 11% increase on last year on the back of strong light and heavy
commercial vehicle sales, but the National Association of Automobile Manufacturers of South Africa (Naamsa)
cautions that the global economic slowdown will also put the brakes on domestic growth.
on a single shift basis, although a number
operate double shifts in certain production
areas.
Component supply. The availability and
supply of imported original equipment
components during the third quarter
remained good, and prices from source
country remained stable.
However, upward price pressure on
imported components continues to be
experienced due to the weakening Rand.
The availability of imported raw materials,
where applicable, remained good and
price movements remained a function
of material prices on the London Metal
Exchange and the Rand exchange rate.
In local supply, fuel and energy costs and
increases in steel prices continued to place
upward pressure on costs.
Local steel quality and delivery
performance continued to improve, with
local steel prices remaining a source of
concern and continue to be the subject
of ongoing discussions between Iscor and
vehicle manufacturers.
Production capacity. Average motor
vehicle assembly industry capacity
utilisation levels improved during the third
quarter and continued to reflect conditions
in the domestic and export markets.
The averages for the third quarter ranged
between 64,7% capacity utilisation for
Light Commercial Vehicles to 80,5% for
Medium CVs. Passenger Car capacity
utilisation averaged 73,9%.
Naamsa said that South Africa’s vehicle
manufacturing capacity utilisation rate
continued to trend upwards closer to the
global average capacity utilisation rate of
about 76,0%.
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