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
