Volatile rand has big impact on MBSA’s truck business

21st April 2017

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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Daimler Trucks & Buses Southern Africa (DTBSA) saw a 12.6% drop in sales in 2016, compared with 2015.

The company sold 4 631 new trucks and buses in South Africa in 2016, down from the 5 300 units and 5 897 units recorded in 2015 and 2014 respectively.

The truck and bus market in South Africa has been on the decline in recent years, dropping from 31 558 units in 2014 to 30 535 units in 2015, and 27 010 units last year.

DTBSA is a business unit of Mercedes-Benz South Africa (MBSA).

MBSA CEO Arno van der Merwe explains that the volatile rand has “had serious repercussions on our trucks business”.

“It is a well-known fact the Freightliner Argosy is a dominant player in the long-haul transport industry in the Southern African region. “As it is imported from our Cleveland plant, in the US, the deteriorating rand:dollar exchange rate has made it increasingly difficult for MBSA to continue importing the vehicle, and affordability for our customers has been compromised.

“In addition, owing to other global currency developments, there is declining international demand for the Argosy.”

Van der Merwe says these factors have prompted MBSA to discontinue the import of the Argosy into South Africa.

“We would like to reassure our customers, dealers and all our stakeholders that MBSA continues, and will continue, to fully support all Freightliners on our roads with parts and service backing through our vast network of dealers, as well as with our partners, such as Cummins and Eaton.”

Electric Vehicles
Mercedes-Benz Cars plans to launch more than ten electric vehicles by 2025 in all segments, from the small smart brand to large sports utility vehicles, says Van der Merwe.

All activities within the German car-maker are being consolidated under the new EQ product brand.

“Our parent company expects that, until 2025, the proportion of electric unit sales in Mercedes-Benz will be between 15% and 25%. “This is dependent on the development of infrastructure and client preferences.”

In South Africa, MBSA currently only offers local clients the C 350 e and S 500 e hybrid models – and no fully electric vehicles – owing to “the long distances travelled” in the country.

“With the extension of the milage of electric models, from 200 km to 500 km, we will actively look at bringing electric vehicles to South Africa in the future,” says Van der Merwe.

“We are on board with this project and will work with the industry to find solutions to provide charging infrastructure and battery exchange programmes.”

Van der Merwe started work in his new position as Beijing Benz Automotive Company president and CEO on April 1. Andreas Engling took over the reins at MBSA, also on April 1.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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