Automotive employment, production up, but now steel, power worries surface

By: Irma Venter
19th April 2010
Source : Engineering News

Concerns over steel price increases and availability, as well as the impact of the recent electricity price hikes have emerged in South Africa’s automotive industry, just as it started to show signs of recovery following a global recession which had decimated new vehicle sales last year.

The National Association of Automobile Manufacturers of South Africa (Naamsa) on Monday reported that the country’s car and truck vehicle manufacturers added 1 196 new jobs to their payroll in the first quarter of the year, to reach employment levels of 31 357 people, compared with the 30 161 positions filled at the end of last year.

The association said the increase in head count was attributable to additional recruitment at three of the industry’s major employers.

Domestic vehicle production was expected to rise from 374 000 units in 2009, to 443 000 units in 2010 – an increase of 18,4%.

Vehicle assembly industry capacity utilisation levels had also recuperated to 69,6% for the first quarter of 2010 at passenger car plants, following a 59,4% rate prevalent in 2009. This was, however, still down on 2006‘s 80,1%.

Light commercial vehicle capacity utilisation levels increased to 65,1% from 56,5%, medium commercial vehicle to 69,6% from 64,6%, and heavy trucks to 74,1% from 66,1%.

Naamsa on Monday also revised it vehicle sales projections for 2010 upwards, and now expected the market to grow by around 14% – to 451 500 units – compared with 2009, after forecasting growth of a much more conservative 7% earlier this year.

Naamsa director Nico Vermeulen said that South Africa’s sales growth for the first quarter of 2010 was higher than in the rest of the world.

“By and large, it is a slightly more positive picture for the local industry,” he added.

However, it was not all good news as Naamsa reported that it expected local component pricing to be “significantly impacted” by the Eskom electricity price increase which came into effect on April 1, although it also noted that the magnitude of this remained murky.

The association added that several vehicle and component manufacturers had also raised concern over steel availability and steel pricing implications arising from steelmaker ArcelorMittal South Africa's (AMSA's) dispute with iron-ore supplier Kumba Iron Ore.

Kumba earlier this year ended a deal which allowed AMSA to obtain ore at a discounted rate, stating that it would sell its product to the steelmaker at market rates, as from March 1.

However, AMSA argued that the long-term preferential supply agreement was still valid, but noted that it would need to increase prices by $80/t to ease the impact of the dispute.

“Steel is a big issue – for more than one vehicle manufacturer – as are Eskom’s price increases and the increase in fuel costs,” said Vermeulen. “The combined effect of all of this is undermining the competitiveness of South Africa’s parts and vehicles in international markets, and it creates pressure on the affordability of vehicles in the local market.”
Edited by: Creamer Media Reporter

Current Issue:Top service honours for Japanese vehicle makers

By: Irma Venter
5th June 2009 (source : Engineering News)

Mitsubishi, Nissan and Toyota offer South African car and bakkie buyers the best sales and service experience, according to market research house Synovate’s 2009 Quality Awards for Sales and Service Satisfaction in the automotive industry.

The three Japanese brands have all scooped gold awards in the categories ‘Customer satisfaction when purchasing a passenger vehicle’, ‘Customer satisfaction when servicing a passenger vehicle’, ‘Customer satisfaction when purchasing a light commercial vehicle’, and ‘Customer satisfaction when servicing a light commercial vehicle’.

There are several gold award winners in the various categories, but only these three manufacturers have taken top honours in all four categories.

The Synovate awards are based on interviews with customers who bought or serviced a vehicle between January and December 2008, as part of the largest survey of South African vehicle owners.

Most manufacturers fared reasonable well.

In the category ‘Customer satisfaction when purchasing a passenger vehicle’, there are 11 gold award winners, including BMW, Mercedes-Benz, Chevrolet and Volkswagen.

“Manufacturers are perfec- ting the sales process,” says Synovate motor research client services head Roger Gibbs. “Especially in times of decreased sales, manufacturers are doing everything they can to ensure customers are happy when buying a car from their dealerships, and this is definitely one of the ways of securing repeat business and loyalty to their brand.”

In the category ‘Customer satisfaction when purchasing a light commercial vehicle’ (or bakkie), there are five gold award winners, including Isuzu and Opel.

The top achiever in ‘Customer satisfaction when servicing a passenger vehicle’ is Nissan, followed by Mitsubishi and Toyota. There are no other gold award winners.

“The service process is a relatively complex one and is generally a grudge purchase for consumers. Regarding satisfaction with the service, respondents are asked about their experience on arriving at the dealership, being booked in on time, being kept in the loop about progress on their vehicle and having their vehicle fixed right the first time, amongst a host of many other aspects,” says Gibbs.

Gold award winners in the category ‘Customer satisfaction when servicing a light commercial vehicle’ also include Isuzu.

The Synovate results are endorsed by the Department of Trade and Industry.

For various reasons, not all brands are included in the survey.

This may be because the manu- facturer chooses not to partici- pate, or because the sample is too small.

Manufacturers not included in this survey are Honda, Alfa, Smart, Jaguar, Hummer, Lexus and the Chinese and Indian vehicle brands.

The study includes around 90% of passenger car and light commercial vehicles in the South African vehicle market.

Edited by: Martin Zhuwakinyu

Current Issue: H1N1 case..

PUTRAJAYA, Wed: Thirty-eight new Influenza A(H1N1) cases, comprising 33 imported cases and five local transmissions, were reported today, bringing the total number of H1N1 cases in the country to 196.

Health Minister Datuk Seri Liow Tiong Lai said out of the 38 cases, 30 involved Malaysians, five were Indonesians and the other three were a Swede, a Palestinian and an Argentinean.He said the locally-infected cases involved three students of Sekolah Menengah Tsun Jin, Jalan Loke Yew Cheras, Kuala Lumpur, while the other two were contacts to the 143rd and 147th case, respectively.Currently, 86 patients were still receiving treatment for H1N1 and 110 patients had recovered from the disease, he added.Liow said two schools -- Sekolah Menengah Tsun Jin Cheras, Kuala Lumpur, and Sekolah Tinggi Chung Hwa, Seremban -- remain closed due to the H1N1 pandemic.

The number of quarantine cases was 4,668 and their quarantine period would end this Friday, he added.Liow also said that 29 more health clinics and five private hospitals in the Klang Valley are now equipped with facilities to conduct throat swab sample test to check for H1N1.

The private hospitals are Sunway Medical Centre, Pantai Medical Centre, Sime Darby Medical Centre, Gleaneagles Intan Medical Centre and Prince Court HospitalHe also said that the use of the rapid test kit to test for Influenza A(H1N1) was not allowed as it was not specifically made to detect H1N1.Liow also clarified that visitors entering the country would be quarantined or admitted to hospitals only if they had symptoms of being infected by H1N1.

For those in the same flight with a confirmed case, only those occupying the three seats nearest to the patient would be placed under quarantine, he added.On the current Influenza A(H1N1) situation in the country, Liow said it was serious but under control, and advised the public to take the necessary precaution against being infected by the disease."Many people say this pandemic does not have a high fatality, not serious. Actually it is serious and everybody should take the necessary measures to prevent the disease from spreading," he added.He said all business premises, including factories, were also advised to take necessary precautions against H1N1. - BERNAMA (source:NSTP - 1 July 09)

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How does the influenza A (H1N1) virus spread?
Spread of this new virus is thought to be happening in the same way that seasonal flu spreads. Flu viruses are spread mainly from person to person through coughing or sneezing of people with influenza. Sometimes people may become infected by touching something with flu viruses on it and then touching their mouth or nose.

What should I do to keep from getting infected by the influenza A (H1N1) virus?
First and most important: wash your hands. Try to stay in good general health. Get plenty of sleep, be physically active, manage your stress, drink plenty of fluids, and eat nutritious food. Try not touch surfaces that may be contaminated with the flu virus and avoid close contact with people who are sick.

How do you know have Influenza?
Seasonal Influenza:
• Fever
• Headache
• Aching muscles
• Exhaustion and feeling weak
• Loss of appetite
• Sore throat
• Runny or stuffy nose
• Dry cough

How do you reduce the chances of spreading influenza?
• Don’t share eating utensils and drinking glasses.
• Clean utensils used by sick people or surfaces they touch with warm, soapy water or disinfectant.
• Avoid crowded situations that place you in close contact with others.
• Don’t smoke. Smoking makes it easier to catch influenza and increases the likelihood of serious complications.
• Stay home if sick with a fever or cough.


What measures you should take if traveling?
• As with other infectious illnesses, one of the most important preventive practices is careful and frequent hand washing. Cleaning your hands often, using either soap and water (or waterless, alcohol-based hand rubs when soap is not available and hands are not visibly soiled), removes potentially infectious materials from your skin and helps prevent disease transmission.
• Try to avoid close contact with sick people.

* Suggested Hand Hygiene Technique:-