Government and the auto industry are working together on a bail-out plan as both the local and export markets crash. The Minister of Trade and Industry met with the presidents of the National Association of Automobile Manufacturers of South Africa (Naamsa) and the National Association of Automobile and Allied Component Manufacturers (Naacam) on February 24. A statement issued after the meeting says “a number of matters requiring urgent attention were identified and, to this end, a Dti – Naamsa – Naacam Task Group was established to finalise specific proposals with regard to possible support measures for the industry.” While exports helped carry the local industry in 2008, they started falling this year – and the situation is expected to get worse. According to Naamsa, exports of South Africanproduced motor vehicles during January 2009 at 10 713 vehicles was 835 units – or 7.2% – less than the 11 548 vehicles exported during January 2008. “Looking at the international environment, the sharp slow-down in South Africa’s major export markets (Eurozone, Japan and the United States) would inevitably translate into significant declines in the number of vehicles exported by the industry during calendar 2009. “At this stage, manufacturers’ projections suggested that overall industry export sales could decline by as much as 35% from last year’s record level of 284 211 vehicles. “Any improvement in international trading conditions would only occur once the severe global economic and financial crisis dissipated. Given the magnitude and seriousness of the global economic crisis, it was anticipated that any recovery would only eventuate in 2010 or 2011,” said Naacam.
