SOUTH AFRICA’S motor exports are likely to recover from the effects of the mid-year strike and stand to grow next year, according to a recent survey. This is good news for the Eastern Cape, which is home to Africa’s biggest motor manufacturer, Volkswagen South Africa, as well as DaimlerChrysler and the General Motors affiliated Delta Motor Corporation. PricewaterhouseCoopers’ global car industry strategist, Richard Gane, says exports are expected to remain down for the rest of the year and into 2002, but he felt the SA motor industry was the most encouraging of the world’s emerging markets. Eastern Cape motor manufacturers Volkswagen South Africa and DaimlerChrysler South Africa are filling niche global right-hand drive markets, while Delta has concentrated on components for its exports. Volkswagen has also had several major successes in the export of components. The Ford Motor Company of Southern Africa has a RoCam engine plant in Port Elizabeth, which will be exporting engines to Europe, India and China. Gane said Poland had been seen as the big hope, but this had not been fulfilled, and Turkey and the Czech Republic had not grown either. He said South Africa was not suffering a huge decline in sales and cutting production, as was currently the case for some companies overseas, because it was not as badly affected by the terrorist attacks in the United States last month. The country has been helped by the fact that it exports mainly to European and Far Eastern countries. Only the BMW 3-Series, which is made in the Gauteng province, is exported to the US. However, Deon Ebersohn, BMW SA's media relations manager, says between 800 and 1000 vehicles are still being shipped to the US every month. BMW is reported to be considering using the East London harbour to ship its imports and exports. There were some negative issues that could affect the industry, such as the problems in Zimbabwe and the Aids epidemic, but there were also many factors that would keep the industry growing. "Reduced import tariffs and increased foreign investment will expand regional market opportunities. Continued export agreements maintain stability in SA's automotive industry and encourage confidence, despite the political crisis in Zimbabwe. "A growing supplier industry throughout the region should encourage increased foreign investment," Gane said.