http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.14Change: -0.15
R/$ = 12.05Change: -0.20
Au 1200.03 $/ozChange: -6.12
Pt 1139.50 $/ozChange: -16.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 21, 2012

Strong growth in sale of imported cars ‘a concern’, says Ford

Back
Port|Port Elizabeth|Pretoria|Africa|Building|Diesel|Ford Motor Company|Platinum|Southern Africa|Africa|Europe|Silverton Plant|Automotive|Local Manufacturers|Manufacturing|Manufacturing Industry|Services|Vehicle Manufacturing Plants|Jeff Nemeth|Ranger|Southern Africa|Diesel
Port||Africa|Building|Diesel|Platinum||Africa|||Automotive|Manufacturing|Services|||||
port|port-elizabeth|pretoria|africa-company|building|diesel-company|ford-motor-company|platinum|southern-africa|africa|europe|silverton-plant|automotive|local-manufacturers|manufacturing|manufacturing-industry|services|vehicle-manufacturing-plants|jeff-nemeth|ranger|southern-africa-region|diesel
© Reuse this



The growth in local sales of imported vehicles compared with those sold by local manufacturers “is a concern”, says Ford Motor Company of Southern Africa (FMCSA) president and CEO Jeff Nemeth.

The South African automotive industry set a new record last year, with 69%, or 272 000 units, of all vehicles sold in the domestic market imported, up from 2010’s 66%.

Nemeth says there is the possibility that imported vehicles can gain an even stronger foothold in the South African market as the local automotive industry is scheduled to sit down next year to negotiate a new multiyear wage deal with labour. Other sectors are also due to carve out wage deals.

A three-year agreement signed in 2010 provided for an across-the-board wage increase in the auto sector of 10% in 2010, and a 9% increase in both 2011 and 2012. However, this followed an eight-day strike at vehicle manufacturing plants. This strike was also sandwiched between labour action in other related industries.

“Any protracted stoppage will open the door for import growth. It will have a long-term effect on the domestic manufacturing industry,” emphasises Nemeth.

Commenting on recent events at Marikana, and the labour dispute that fuelled the death of 44 people at the platinum mine, Nemeth says he hopes it will act as a catalyst for government and the labour unions involved to “address the issues that precipitated the tragedy”.

Why did circumstances get to that point? I am hopeful the ANC and Cosatu will seize the opportunity to display leadership in this matter to avoid labour conflicts such as those we have seen recently.”

FMCSA’s payroll is certainly bigger than it was in 2010.

As the company is now a volume producer and exporter of the new Ranger pick-up, it has added 800 new jobs to facilitate a second shift at its Silverton plant, in Pretoria, where the Ranger is assembled, and a third shift at its pick-up diesel-engine plant, in Port Elizabeth.

However, says Nemeth, doing this is easier said than done.

Implementing a second shift at a vehicle assembly plant requires careful planning. When FMCSA did so on September 3, it was the first time since the plant opened in 1968.

Nemeth says the vehicle manufacturer had to ensure all the support services, such as transport, catering and so forth, were in place, and that it could receive trucks 24 hours a day. Ford’s component suppliers also had to buy in to the idea of producing more vehicles a day.

At the moment, the supply base – a mix of old and new suppliers – “is struggling”, says Nemeth.

“There is a 5 000-unit gap between what we want on our schedule and what suppliers can give us right now.”

However, he notes that this is “quickly improving”.

“We overbuilt 12 days out of the last 30, so things are stabilising now.”

Nemeth adds that the extra shifts come as a result of increased global demand for the Ranger pick-up, which “is a good problem to have”.

“The most surprising is the demand from Europe. I keep on expecting it to scale back, but it is not happening. The Ranger continues to outstrip our estimates.”

Nemeth adds that Ford has not even yet “rolled out” the “full marketing plan” of the Ranger.

FMCSA is currently building largely high-spec double-cabs, and only a few single-cab workhorses, which means the company is still catering mostly for the demand of the private individual, and not yet that of companies or small businesses.

“The demand for double-cabs is outstripping our expectations. “We are working hard to build more.”

Nemeth notes that European double-cab Rangers are even higher specced that those models sold in Africa.

“It seems that European bakkie sales, which were traditionally aimed more at fleet customers, have penetrated the retail market and secured some new customers.”

FMCSA will eventually export the Ranger to 148 markets, mostly in Africa and Europe.

Nemeth says August was be a “rough month” for FMCSA in terms of new-vehicle sales as stock levels were “at the lowest level in history”. However, there will be an easing in September as supply stabilises.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Buying the catering unit of cash-strapped state airline South African Airways (SAA) could work for Bidvest Group, its chief executive said on Friday. SAA is considering selling some of its units including its inflight and airport lounge catering business, Air Chefs,...
KPMG International’s latest Global Automotive Executive Survey, which canvassed 200 automotive executives, shows that short-term market issues are taking precedence over strategic innovations. The document, the sixtheenth survey, notes that respondents view market...
Cameroon state airline Camair-Co will use $50-million from African lender Ecobank to relaunch its operations, a senior executive said, as national carriers in West Africa seek cash and strategic partners to stay afloat. Camair-Co general manager Jean Paul Nana Sandjo...
More
 
 
Latest News
Two influential US senators, central to the so-called ‘chicken war’, have announced their intention to pursue amendments to the African Growth and Opportunity Act (Agoa) to secure greater access for US poultry into the SA market. “We believe passionately in Agoa’s...
The Independent Communications Authority of South Africa (Icasa) on Friday published the findings of a discussion document on South Africa’s television and radio local content environment. Icasa last year requested industry input as it reviewed and revamped...
Buying the catering unit of cash-strapped state airline South African Airways (SAA) could work for Bidvest Group, its chief executive said on Friday. SAA is considering selling some of its units including its inflight and airport lounge catering business, Air Chefs,...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Today’s organisations execute projects within increasingly complex environments – particularly in the engineering sector. The ability to successfully execute these projects is what drives the realisation of successful projects and, ultimately, the achievement of...
SMART DISTRIBUTION Providing funds to introduce smart grid technologies in the absence of a clearly defined strategy will not result in the desired outcome
South Africa’s distribution grid is a twentieth-century relic, which must be changed to serve the country’s modern electricity needs, says South African National Energy Development Institute (Sanedi) Smart Grid Programme manager Dr Minnesh Bipath. “What we are...
There is a disparity in government funding provided to integrated transport networks – bus rapid transit (BRT) networks ¬¬– and that given to conventional bus services, says Putco executive director Thys Heyns. “We have neglected and strangled conventional bus...
The Johannesburg Social Housing Company (Joshco) is building 502 rental housing units, valued at R200-million, in Dobsonville, Soweto, which are scheduled for completion in June 2016.
Automotive component manufacturer and distributor Metair is centralising its research and development (R&D) work in Turkey, in an attempt to bolster the company’s ability to produce affordable start/stop batteries. The new R&D centre is part of an expansion plan in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96