Despite the slowdown in sales, the good news for the freight sector is that the South African auto industry is continuing to invest for the future, according to the latest quarterly review by the National Association of Automobile Manufacturers of South Africa (Naamsa). In his review of the second quarter of 2009, Naamsa director Nico Vermeulen says the seven major original equipment manufacturers (OEMs) in South Africa are expected to invest around R3.6-billion on plant, equipment and land. “The capital expenditure projection for 2009 will be revised upwards in light of higher investment expenditure by one major OEM,” he added. Imports and exports of components and fully built up vehicles make up an important percentage of work for the freight industry. It is expected that exports of fully built up vehicles will drop from 195 670 in 2008 to 130 000 this year. Imports will have dropped from 203 808 to an estimated 152 000. Volumes are not expected to recover soon, warns Vermeulen in his report.
Auto industry continues to invest
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