For the 4th quarter of last year, NAAMSA reported that passenger car sales - at 56 207 units - had recorded a decline of 6 628 units - or 10,5% - compared to the 62 835 new cars sold during the corresponding quarter of 2008. Combined commercial vehicle sales during the fourth quarter of 2009 - at 32 294 units - reflected a fall of 8 064 units or a decline of 20,0% compared to the 40 358 units sold during the corresponding quarter of 2008. The conclusion was that year on year comparisons continued to reflect an industry in recession. The review went on to state that the impact of the global financial and economic crisis was reflected in the downturn in new vehicle exports in 2009 which, in aggregate terms - at 174 947 - declined by 109 264 units exported, or 38,4% from the 284 211 units exported in 2008.

Now let’s look at NAAMSA’s review for the 1st quarter of this year. And before you read this, sit up straight, throw the name Malema out of your mind and get ready for some good news. Here goes….

According to the review, 2010 first quarter aggregate industry reported passenger car sales came in at 81 450 units recording an “exceptional increase” of 14 371 units - or 21,4% - compared to the 67 079 new cars sold during the corresponding quarter of 2009. Combined commercial vehicle sales during the first quarter of 2010 - at 39 446 units - recorded an improvement of 3 464 units, or 9,6% compared to the 35 982 units sold during the corresponding quarter of 2009. Given these figures, the report concluded that “on a quarterly basis, sales of new vehicles in all segments recorded exceptional gains compared to the corresponding quarter in 2009 with the resurgence in new car sales growth during the first quarter representing one of the best on record.”

The review goes on to state that the latest sales figures confirm that the industry is in the process of emerging from the extremely severe recession in the domestic automotive market which started mid 2006 and lasted through the end of 2009. “However, the improvement should be seen in the context of the historically low base in the first quarter of 2009 when sales were particularly depressed as a result of the uncertainty arising from the global financial and economic crisis. After an extremely difficult year, the South African automotive sector is on target for an improved domestic sales environment during 2010 as well as higher levels of production on the back of continued recovery in demand in export markets.”

And the good news goes on. The report states that projections for 2010 have been revised upwards and in aggregate terms, domestic sales are expected to improve from the 395 000 recorded in 2009 to about 451 000 in 2010 – an increase of around 14,0%. And it ain’t going to end there. The report states that sales for 2011 are projected at 520 000 increasing to 589 000 for 2012. Factoring in the expected improvement in domestic sales together with anticipated growth in exports, the report states that domestic production – as opposed to sales - of motor vehicles in South Africa during 2010 is expected to rise from 374 000 vehicles produced in 2009 to about 443 000 units projected for 2010 – an increase in vehicle production of about 18,4%. And already this is transferring into higher levels of employment. Compared to the 30 161 positions at the end of 2009, the report states that aggregate industry employment improved by 1 196 jobs during the first quarter of 2010 to 31 357 jobs - an improvement of 4,0%. Wow! What a great turn-around. And what great news this is!

I bring this jolly news to our readers not only to provide cheer as a counter to the current avalanche of negatives being dished up by the likes of that awful man Malema and his ilk, but also to provide hope for a post World Cup South Africa. Many people have expressed the fear that once the glitter and glamour of the World Cup has gone, South Africa is going to deteriorate into a cesspool of political strife that will pull the economy down and frighten existing and potential investors away. Given what we have seen over the past few years, this fear is certainly understandable but there are sectors outside of our ‘tatty political ranks’ which are into nation building as opposed to self enrichment. The South African new vehicle manufacturing industry, comprising the major new vehicle manufacturers as well as specialist commercial vehicle and bus manufacturers, is one such sector. And the pertinent point to note is that individual members of this sector are linked solidly to overseas parent companies. As such, this sector is probably the most internationally connected business sector in the South African economy. That they are looking positively into the future is encouraging and should provide hope for all. The increased level of employment that has already accrued this year is one indication of its positive commitment to the country. The doubling of planned capital expenditure for 2010 over that of 2009 is another. Now, if only our politicians could align their thinking and, more importantly, their actions with such positive aspirations instead of the ‘snouts in the trough’ type behaviour we have grown so used to seeing of late, then we have a chance to grow South Africa into the wonderful, united country our beloved Nelson Mandela envisioned, encouraged and sacrificed 27 years of his life for in jail. Let’s ensure that the unifying spirit the World Cup is sure to bring to all South Africans, acts as a new beginning for South Africa rather than a mere flash in the pan month of exuberance. The South African new vehicle manufacturing industry is looking at building a positive South Africa beyond the World Cup. We need all business sectors and politicians to follow that example.