Car makers 'dying' - News24

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The_Unbeliever

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http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-1786_2556074

Port Elizabeth - The South African automotive industry could cease to exist in the next five to seven years unless steps are taken to improve its competitiveness.

"And we need to this in the next one to two years," said Dave Powels, president of the National Association of Automobile Manufacturers of South Africa (Naamsa).
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Hint :

1. Drop prices
2. Remove job protection
3. Compete with imports from other countries without pushing those prices up

Then people will start to buy new cars.

But, in the meantime, farewell.
 
Sit down with the trade unions and explain this to them!

Higher salaries = higher production costs = higher car prices = less cars purchased = production cuts = job losses.
 
Yea car manufactures should have thought of this before they upped their prices, sorry, but no sympathy from me...
 
Toyota have been harping on about this for ages, since I first started in the motor industry, back in 1998, they've been singing the same song, and it's perfectly logical.

The part manufacturers need to produce as much of the required parts locally as possible. This means huge infrastructure development and support from government to set this up.

But, government has been too busy doing fictitious "job-creation" and throwing mud at each other to bother with creating tax and incentives to get the ball rolling, and do not for a second even begin to hint that perhaps the development bank would be open to lending money for the expansion of parts manufacturer capacity, the development bank only deals with their own set of preferred clients.

You have to wonder why those that have enriched themselves so nicely from BEE see no responsibility towards issues like this.
 
I feel no sympathy for them. High prices for a car. No thanks. I rather buy 2nd hand and win!
 
Yeeee Haaaaaaaa die ya bastards.

Imports Nissan 350Z for $18000.00 from Japan.
 
Why is it that cars built in SA are exported and sold for much less than local prices? Perhaps because the profit margins here are much higher, IMO. Let's see some realistic markups locally please, then perhaps sales will improve and the industry could actually survive without any concern.
 
flarkit said:
Why is it that cars built in SA are exported and sold for much less than local prices? Perhaps because the profit margins here are much higher, IMO. Let's see some realistic markups locally please, then perhaps sales will improve and the industry could actually survive without any concern.
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+1






we have been getting shafted for tooo long now!
 
Get rid of these ridiculous car allowances and the industry will be begging for customers.
 
Can we fast forward to the funeral already?
These fools make cars here for the export market where they sell for less than here.
 
bwana said:
Get rid of these ridiculous car allowances and the industry will be begging for customers.
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Thank you for bringing up that point!

I have been saying that for years now. Once car allowances are removed from various "packages", suddenly it is not the cleverest move to be buying the most expensive car on the block. I have a relative who HAS to buy a new Volvo SUV every couple of years to keep the tax man happy...what utter bollocks!

Remove 'incentives" to buy expensive, level the playing fields with buyers paying their own money, and the SA motoring scene will take on a whole new perspective!
 
I would be happy with cheap Nippon imports should the local industry crash & burn.
 
Fazda said:
No problem with that at all...we have all been ripped off for far too long now.
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That's my reasoning as well.

The SA car manufacturing industry is a pretty artificial one born out of state subsidies, government protection through taxes, import/export ratios etc etc
 
ponder said:
I would be happy with cheap Nippon imports should the local industry crash & burn.
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Fact. Why should the local market suffer from high prices whilst the importers of our cars enjoy lower prices? We should be able to do the same then
 
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