TheChamp
Honorary Master
It's the MB in my post.You forgot merc in the picture
Personally when I am buying a car I also dont mind cheap prices from that perspective
From a different viewpoint and looking at what is good for the country a lot of cars manufactured here are exported which is then translated into foreign earnings.
1. The 30% , potentially 40% tarrif rate for the US could kill a lot of that income and cost jobs. Merc is being hit hard with this. Figures I saw is that they current export 90% to the USA
2. Potentially it could cause the manufacturers of cars to stop operations in South Africa as it is now too expensive and move those manufacturing plants to countries where conditions are better. This is not only tarrifs but also the difficult business climate brought in with BEE and unions.
2. Importing cars is not good for the country. It generates minimal jobs and depletes forex holdings and will widens the defecit.
Car margins in South AFrica are actually fairly tight. Bringing in subsidised cheap cars does not help this and could kill all South African based operations
I get all that about importing cars not being good for the economy, what I cannot stand is the hypocrisy, we have been importing cars since forever and our Chinese critics were buying those cars without a care for the local industry, the local industry itself didn't care much because those were not offering any competition being just as overpriced.
The Chinese comes in and all of a sudden we care so much about the local industry? Ke hana bomenemene.