Exports offset difficult
domestic conditions
SOUTH AFRICANS may be buying fewer cars, trucks and bakkies, but exports are growing - with the biggest winners so far being Volkswagen and BMW.
The National Association of Automobile Manufacturers of South Africa (Naamsa) says in its review of 1998 sales that the exceptionally difficult conditions in the domestic market had been partly offset by exports of South African produced vehicles which had continued in an expansionary phase during 1998.
Despite the lower exports of commercial vehicles in 1998, industry exports in 1999 are expected to show significant growth, particularly in the case of car exports, and current projections for 1999 exports of South African produced vehicles are some 80 000 cars, 8 500 light commercial vehicles and 1 000 medium and heavy commercial vehicles, according to Naamsa.
The bulk of the cars will be made by Volkswagen in Uitenhage, which has an order for 60 000 new-generation Golf 4s a year for world export markets. BMW, based in Rosslyn, is the other major car exporter.
Revenue from exports of built up vehicles during 1998 was estimated at R1,5 billion, according to Naamsa. In 1997 it was R1,2 billion. This year it is expected that industry vehicle export turnover will exceed R7-billion - a significant share of the estimated industry turnover of R28,5-billion in 1998.
The effects of exports on the health of local motor companies can already be seen. Companies with low exports, like Toyota, Samcor and Nissan, announced labour cut-backs before Christmas.
Volkswagen, in contrast, set a South African industry first by operating its Golf A4 production line right through the annual break.
BY ED RICHARDSON
