While South African
automotive industry workers
have downed tools, the crucial
American market has entered
the fast lane, with August new
vehicle sales expected to hit
volumes last
seen in 2006.
Newvehicle
retail
sales in the
US in August
2013 are
projected to come in at
1 270 400 units, a 12%
increase from August 2012.
J D Power expects consumer
spending on new vehicles in
August will approach $36
billion, which is the highest
level on record.
America is a major export
market for the likes of BMW,
Mercedes Benz and Toyota. In
its second quarter report for
2013, the National Association
of Automobile Manufacturers
of South Africa (Naamsa)
reports that exports to the
United States grew by 42.8%
to 37 398 units compared to
the same period in 2012.
With America again
firing on all cylinders, global
manufacturers will gear up
plants elsewhere to meet
demand in America – which
would mean that the export
units have
been lost to
South Africa.
According
to BMW,
over 75% of
all 3 Series
vehicles produced at its
Rosslyn plant are destined for
BMW markets in the USA,
Taiwan, Japan, Singapore,
New Zealand, Hong
Kong, Australia and
sub-Saharan Africa.
The Mercedes
Benz East London
plant produces the
W204 C-Class for
both the local and
US markets.
From 2014,
however, the
plant will have stiff
competition within the
Mercedes Benz group, which
has diversified its production
of the C-Class.
From 2014 the C-Class will
be the only Mercedes-Benz
vehicles to be produced on
four continents, being made at
plants in Bremen (Germany),
East London (South Africa),
Beijing (China) and Tuscaloosa
(USA), according to the
company.
Toyota is the largest vehicle
exporter from South Africa,
constituting 25% of all
vehicle exports. In July 2013,
it exported 6 668 units to
countries around the globe.
The importance of America
is emphasised in the July
market comment by Naamsa.
It says “vehicle exports
into Europe remain under
pressure as a result of the
recession in the Eurozone,
however substantially higher
exports to North America,
Asia and Africa should enable
the industry to achieve record
exports in 2013 at around
337000 vehicles compared to
the 277893 vehicles
exported in 2012”.
INSERT
$36bn US consumer spending on new
vehicles in August
