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News Article - Automotive
Eastern Cape operation is jewel in DaimlerChrysler crown
Posted on: Friday, 07 March 2003. Article source: Eastern Cape Business News
EAST LONDON-based DaimlerChrysler is one of the best performing divisions in the international DaimlerChrysler group. Although the South African market rates only about 14th in size for DaimlerChrysler world-wide, turnover was the seventh highest globally, rising by 43 per cent to R20,4 billion, says management board member for finance, Rudi Borgenheimer. According to him, much of the success of the South African operation could be attributed to higher than expected Rand earnings from component and vehicle exports, and better cost efficiencies in both marketing and manufacturing. Exports of components and Mercedes-Benz C-Class cars had laid the foundation by enabling DCSA to import a wider model range than before, which in turn enabled the company to increase domestic sales volumes and market shares. With exports being invoiced in Dollars, Euros or Yen, the earnings in Rands were ''far beyond expectations'', he added. While both sales and production volumes grew, DCSA managed to hold costs at much the same level, which resulted in much greater cost efficiency throughout the company. Management Board Member for Manufacturing, Dr Hansgeorg Niefer, says the company produced a record of more than 47 000 Mercedes-Benz C-Class cars and 8 000 Mitsubishi Colts in the East London plant during the last financial year. Providing a review and outlook on marketing conditions, the Management Board Members for Sales and Marketing, Fritz van Olst, and for Commercial Vehicles, Geoff du Plessis, said 2002 had been much better than expected in almost every market segment. ''2002 was a bumper year,'' Van Olst said. ''Last year, we claimed the number one spot in the luxury car market in South Africa.'' Chrysler/Jeep had continued its record-breaking sales run, selling 7 611 vehicles last year, while despite a drop in Colt fleet sales, Mitsubishi Motors had increased its sales through dealers. Du Plessis said the Commercial Vehicle market had seen an overall growth of eight per cent, which reflected South Africa's growing export business as customers increased or renewed fleets to carry products into Africa. Du Plessis said he saw a marginal growth in the commercial vehicles sales during 2003. Announcing an industry-leading decision to extend DCSA's HIV/AIDS benefits to continue covering any employee declared redundant, the Management Board Member for Human Resources, Johann Evertse, said DCSA's HIV/AIDS programme had become a world benchmark. Evertse said the Management Board had agreed that any employee who had to leave the company through no fault of their own would continue to receive DCSA's full support in HIV/AIDS treatment. ''This very important decision, as far as I know, is the first of its kind in South Africa,'' he said.
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