http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.64Change: 0.00
R/$ = 12.37Change: -0.06
Au 1168.52 $/ozChange: -0.28
Pt 1075.00 $/ozChange: -7.00
 
 
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|Export|Ford Motor Company|Platinum|Southern Africa|transport|Trucks|Africa|Europe|Silverton Plant|Automotive|Local Manufacturers|Manufacturing|Manufacturing Industry|Services|Vehicle Manufacturing Plants|Jeff Nemeth|Ranger|Southern Africa|Diesel
Port||Africa|Building|Diesel|Export|Platinum|transport|Trucks|Africa|||Automotive|Manufacturing|Services|||||
port|port-elizabeth|pretoria|africa-company|building|diesel-company|export|ford-motor-company|platinum|southern-africa|transport|trucks|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
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
Article contains comments
The e-tolls issue has gone way beyond rates, Wayne Duvenage of civil action group the Opposition to Urban Tolling Alliance (Outa) said on Thursday. "The (opposition against e-tolls in Gauteng) is not about the tariffs but more about the irrationality of the...
Article contains comments
It will take up to 18 months for government and the South African National Roads Agency Limited (Sanral) to implement the full spectrum of proposed tariff changes for users of Gauteng’s tolled freeways. While Sanral would, on Wednesday, implement the “first part” of...
Article contains comments
More
 
 
 
 
 
 
 
 
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