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DCSA looks at export markets for its LHD cars
Posted on: Thursday, 27 January 2005. Article source: Daily Dispatch
Outgoing DaimlerChrysler South Africa chairman Christoph Köpke says the giant auto manufacturer was already in discussions with three of the world's biggest shipping lines to export Mercedes-Benz vehicles to left-hand drive countries.
In an exclusive interview before leaving for the group's head office in Stuttgart, Köpke said these discussions are being conducted in conjunction with BMW.
"By pooling our volumes we will try to convince shipping lines to provide us with a direct ship once weekly," he said.
Köpke said DCSA was already investing to build left-hand drive Mercedes- Benz vehicles "should we get the contracts to export to the United States, South America or India".
"It has not yet been finalised where these cars will go. It is not official that (they) will go to the US but the chances are pretty high.
"We look at any opportunity to export but we do not determine what cars will be built in East London. That is determined by Stuttgart.
"But we have to start discussions with people who will transport them."
He said DCSA was looking at all the possible trade routes.
South Africa's macro economy has in his life never been in a better shape, said Köpke, but he warned that the future of DCSA would not be determined by an emotional decision.
"The cornerstone for success is to outperform the commitments we have made to shareholders.
"That's the minimum requirement.
"If we maintain our track record there is no reason that they will not invest here.
The only problem would be if the market does not show any growth.
"It does not make sense to manufacture 200000 C-Class Mercedes-Benzes when you only sell 10000. Factories follow the market."
Köpke said if a good positive growth rate for new investments could be maintained in the country it will positively impact on the unemployment situation.
"That results in better stability, and better confidence."
In an exclusive interview before leaving for the group's head office in Stuttgart, Köpke said these discussions are being conducted in conjunction with BMW.
"By pooling our volumes we will try to convince shipping lines to provide us with a direct ship once weekly," he said.
Köpke said DCSA was already investing to build left-hand drive Mercedes- Benz vehicles "should we get the contracts to export to the United States, South America or India".
"It has not yet been finalised where these cars will go. It is not official that (they) will go to the US but the chances are pretty high.
"We look at any opportunity to export but we do not determine what cars will be built in East London. That is determined by Stuttgart.
"But we have to start discussions with people who will transport them."
He said DCSA was looking at all the possible trade routes.
South Africa's macro economy has in his life never been in a better shape, said Köpke, but he warned that the future of DCSA would not be determined by an emotional decision.
"The cornerstone for success is to outperform the commitments we have made to shareholders.
"That's the minimum requirement.
"If we maintain our track record there is no reason that they will not invest here.
The only problem would be if the market does not show any growth.
"It does not make sense to manufacture 200000 C-Class Mercedes-Benzes when you only sell 10000. Factories follow the market."
Köpke said if a good positive growth rate for new investments could be maintained in the country it will positively impact on the unemployment situation.
"That results in better stability, and better confidence."
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