Max Auto Updates - 31/08/2009

Fuel price set to increase

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=840

The retail price of all grades of petrol will increase by 36 cents a litre on Wednesday September 2, the Department of Minerals and Energy announced on Friday.

Diesel prices will also increase, with 0.05% sulphur rising 35 cents a litre and 0.005% sulphur increasing by 36 cents per litre. Wholesale paraffin increases by 21 cents and illuminating paraffin by 28 cents per litre.

Petrol in Gauteng will now cost 805 cents a litre from 769 cents before, and it is now 782 cents at the coast from 746 cents before.

During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased.

The average rand/dollar exchange rate weakened when compared to the previous period. The average rand/US dollar exchange rate for the period 31 July 2009 to 27 August 2009 was 7.9913 compared with 7.9840 during the previous period.

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ABT announces R8 5.2 FSI V10 with 441kW



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=841

ABT Sportsline can always be relied upon to squeeze more excitement out of any Audi product. This time they have taken the R8 5.2-litre FSI V10 from super to super duper. Factory dynos place power at 386kW and 530Nm of torque. The tuner has increased power to 441kW and simultaneously decreased acceleration times to 3.8 seconds for the 0 - 100km/h sprint. Audi claims 3.9 seconds. The ABT R8 5.2 FSI has a top speed of 322 km/h. To keep it all clean and comfortable an adjustable sports suspension system has been installed.

"The 441 kilowatts should be present, but also be available on the street," said DTM race driver and Abt-Sportsline principal Christian Abt, "And the car can also be at the highest speeds and more demanding routes moving at the limit not only on paper."

The ABT Sportsline DTM crew designed the bodywork which features an ABT front grille, new front air dams, side skirts, a rear apron, a striking rear wing and an ABT four-pipe exhaust system. Carbon fibre was used extensively throughout manufacturing. The gleaming wheels are ABT AR and BR 20-inch types.

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SpeedART TITAN DTR 310 based on Cayenne Diesel



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=842

Porsche tuner speedART is offering owners of the Porsche Cayenne Diesel more go and show for their SUV. The conversion starts on the exterior where a new front spoiler with fog lamps, side skirts, a rear apron, a roof spoiler and 22-inch wheels are fitted. Optional LED daytime running lights provide even more visual appeal. To please the ear a sport exhaust system with special double pipes promises a deep and impressive growl.

Three levels of power are offered for the speedART TITAN DTR range: 206kW and 620Nm, 213kW and 640Nm plus 228kW with 650Nm. The 228kW conversion includes a larger VTG turbocharger.

For cars which already have air suspension systems installed an electronic lowering module is offered, while those with normal suspensions can be fitted with an adjustable system or lowering springs. High performance brakes with 368mm discs are recommended due to the cars' characteristics.

The interior can be decked out in Alcantara while the steering wheel comes padded with F1-type shift paddles. Other gadgets include a boost gauge with a Sports Chrono-inspired design and a speedo background coloured in the customer's desired hue.

Max Auto Updates - 28/08/2009

Manhart Racing BMW Z4 with 405kW V10 transplant



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=839

Fans of the BMW Z4 would surely have been disappointed to learn that Munich is not planning to introduce an M version of the new two-seat hardtop. The highest that the Z4 goes as far as power is concerned is 225kW which might increase to 245kW if the BMW Motorsport kit is introduced for the model. Other than that no manic coupe/ roadster is in sight.

Panic not Z4 M fans because Manhart Racing has a solution. The tuner, whose founder Günther Manhart has 25 years of reworking BMW engines under his belt, has shoehorned the V10 naturally aspirated engine from the M5 and M6 into the small and narrow body of the Z4. Fitting such a monster powerplant proved a harrowing challenge but one that was eventually overcome. Now it sits just above the car's front axle. The total kerb weight is 1,450kg.

Factory power is a good 373kW. Manhart has increased this to 405kW by, among other things reworking the ECU. Performance looks to be quite strong with the 0 - 100km/h dash said to be attainable in 3.9 seconds. They have also removed the 250km/h speed limit.

Other modifications include an AC Schnitzer stainless steel exhaust system with four muffler tips, an original M5 E60 6-speed manual transmission which includes a Fichtel & Sachs clutch and a M5 E60 differential. All the equipment is kept on tar by 8.5Jx19 ET35 235/35ZR19 front tyres and 10Jx19 ET20 285/30ZR19 rear tyres.

Max Auto Updates - 27/08/2009

Taxi operators warned

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=837

Gauteng premier Nomvula Mokonyane has warned taxi operators not to stage disruptive protests against the Bus Rapid Transit (BRT) system to be launched in Johannesburg next week

"The taxi industry can't be a law unto themselves," Mokonyane said during a visit to the Johannesburg Central police station on Tuesday.

"BRT is about the government facilitating an opportunity for all South Africans.

"We're going to be tough and can't be held to ransom by the taxi industry.

"If they want to rule this country, they must register as a political party and contest in the elections."

Mokonyane said if taxi operators wanted to protest next week, they should not break the law.

"If it is a stay away, then they must stay home and not disrupt traffic on our roads."

The SA National Taxi Council announced last week that a nationwide taxi strike would start on Monday.

The taxi industry has said the BRT, an improved bus service, would adversely affect its business and had complained it was not an active player in the planning stages of BRT.

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LUMMA E 50 CLR Based on Mercedes W212 E-Class



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=838

LUMMA Design has unveiled their new E 50 CLR, which is based on the Mercedes E-Class W212.

The exterior features a front bumper spoiler with integrated daytime running lights, aggressive side skirts, and sporty front fenders with integrated side vents. Out back, LUMMA equips the CLR with a lip spoiler, a redesigned rear bumper, and an integrated trunk lid spoiler. Other design touches include a 25mm reduction in ride height and 20-inch "Racing Edition" wheels outfitted with high performance Michelin tires.

Inside, the CLR boasts attractive milled aluminum pedals and suede floor mats with embroidered LUMMA crests. Options include a suede trunk mat, illuminated door entry strips, and a 300 km/h speedometer.

On the performance side, LUMMA offers a "V-Max" system that enables the E 500 to produce 316 Kw (450 hp) and 550 Nm of torque. For diesel E-Class owners, the company offers a "D-Box" that increases engine performance by up to 20%. Other accessories include a "GPM-Powermodule", which sharpens the accelerator's response, and a stainless steel sport exhaust system.

Max Auto Updates - 26/08/2009

Jo'burg Metro to probe into speed cameras

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=833

The Johannesburg metro police department has appointed an investigating officer to probe allegations that its speed cameras were being operated illegally.

Spokesperson Edna Mamonyane said the JMPD met Justice Project of SA representatives and asked them to provide information pertaining to the allegations of speed camera operations.

The JMPD also called on anybody with information regarding the alleged illegal activity to send an e-mail to henkc@joburg.org.za

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Fiat 500 Abarth bumped to 147kW

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=834

The Fiat 500 Abarth is currently the model range's highest performance variant until the Essesse arrives. Or until tuner Karl Schnorr Kraftfahrzeuge has had their way with it, which they now have. Both the performance and visual aspects have been dealt with and as such power is up and the looks stand out from the crowd.

For now two levels of power are available. The first is Power Level I which takes the 1.4-litre motor from 99kW and 206Nm of torque to 120kW and 251Nm. Power Level II gives it more punch on the nose, taking it all the way up to 147kW. Schnorr did this by installing a bigger turbocharger, a sports exhaust system and by remapping the engine software.

Visually the changes include red aluminium rims of size 7x17". The suspension was lowered by a few millimetres to give the car better road holding manners.

Our wish is for the guys on the Alfa Romeo side to be inspired by such mods and pick up where they left off with the wavering MiTo GTA.

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GM considers keeping Opel - needs $4.3 billion



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=835

General Motors may yet retain Adam Opel as one of its companies, a report has revealed. Accroding to The Detroit News, the General is discussing ways of unbundling the stalemate being experienced in the negotiations to sell Opel.

One of the solutions apparently being punted is the retention of the company. About US$4.3 billion would be needed to realise this option. Considering the prevailing situation in financial markets such an amount seems highly impossible to raise, especially by a company barely out of bankruptcy.

GM is also reviewing a couple of serious bids. Of course a proposed agreement exists between GM and Magna International of Canada whereby the latter will buy 27.5% of Opel, the same for Russia's Sberbank, GM keeps 35% while employees get 10%. There is a snag with the Magna bid. A source says a rival bid from RHJ International SA of Belgium is better and simpler to implement than that of the Magna consortium. However the German government seems to show a preference towards the Canadians since it says it will provide Opel with US$6.4 billion in loans but only if the Magna-led bid is chosen.

Another twist to the story is that as part of the conditions agreed upon when the US Treasury Department loaned US$50 billion to GM, the department has the right to block any GM transaction involving over US$100 million.

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Traffic blitz for 'killer road'

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=836

The North West Public Safety department is to embark on a month-long traffic operation to reduce accidents, it said in a statement on Wednesday morning.

The zero-tolerance "Operation Moretlwa-die Poppe Sal Dans" starts on Friday and traffic authorities were expected to concentrate their efforts on a hotspot road running between Lichtenburg and Mafikeng.

"The operation...is in response to a public outcry for intensified law enforcement targeted at reckless and inconsiderate drivers on the road," spokesman Lesiba Moses Kgwele said.

The province's MEC Howard Yawa said an analysis of accident reports suggested that driver behaviour contributed to 99% of fatalities.

He said the road between Lichtenburg and Mafikeng was considered a "killer road".

"Between April and June this year, 35 accidents occurred on the road resulting in 12 fatalities, 29 serious and 23 slight injuries to road users," he said.

The operation would include visible patrols and roadblocks, and was expected to intensify after 6pm.

"No admission of guilt fines would be issued to reckless and inconsiderate drivers during the operation," said Kgwele.

"Instead, dockets will be opened for the culprits to be charged and appear in court."

Authorities were to focus on driver fitness, vehicle roadworthiness, barrier line infringements, and speed.

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Max Auto Updates - 25/08/2009

Insider trading claims hit Porsche



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The homes of Porsche SE ex-chief executive Wendelin Wiedeking and his former finance chief have been searched as part of a probe into suspicions of market manipulation, prosecutors said Saturday.

The Stuttgart prosecutors' office confirmed a report in Spiegel magazine that the homes of Wiedeking and Holger Haerter had been searched as a routine measure in the investigation.

No further details were available.

Porsche spokesman Frank Gaube said he could not comment on details of the investigation, but reiterated that the firm rejects the allegations.

Last week, Porsche confirmed that both Wiedeking and Haerter were being investigated by Stuttgart prosecutors in connection with the company's unsuccessful attempt to acquire larger automaker Volkswagen AG.

At the time, a spokeswoman for prosecutors, Claudia Krauth, confirmed that an investigation was under way into suspicions of market manipulation and passing on inside information. She declined to give any details.

Porsche's Stuttgart offices were searched last week and prosecutors seized documents.

Wiedeking and Haerter, who had championed Porsche Automobil Holding SE's failed drive to take over VW, stepped down last month.

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Audi to possibly unveil RS3 in Frankfurt



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=831

Speculative, speculative, speculative....

Disclaimer: The model pictured in the main "photo" above is a Photoshop-enhanced image of an A3 TDI Clubsport Quattro Concept made to look like a prospective Audi RS3. The rest are of that same A3 TDI.

The article quoted here is from the Swedish edition of Auto, Motor & Sport, and they claim to have a source inside the Ingolstadt-based Audi who says the RS3 is coming soon.

Audi has not yet officially unveiled an RS3 but we can let loose our imaginations, can't we?

An RS3 will most likely come with Audi's 2.5 liter, 5-cylinder turbocharged engine first seen in the TT RS. That engine produces 250 kW and 450 Nm of torque. It will also be a strict quattro (all-wheel drive). The Swedish mag is also speculating that an RS3 variant of that engine may be dialed up a little and feature anywhere from between 220 kW to 295 kW, making the model faster than an R8 with the 4.2 liter FSI engine.

If there is going to be an RS3, the Frankfurt motor show next month would be the ideal place to premiere it and that's what the Swedes at Auto, Motor & Sport are saying.

Looks like we will just have to wait until then.

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Sportec Announce 298kW Upgrade for Audi TT RS



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=832

Sportec is presenting a Stage One engine performance upgrade for the upcoming Audi TT RS.

Engineers took an analytical look at the new engine's data and saw an opportunity to for further performance enhancement. The result is the remapping of the ECU to increase both power and torque.

In standard form the little chilli chucker uses its turbocharged 2.5-litre five-cylinder to good effect for an output of 250kW at 5,400rpm and maximum torque of 450Nm at 1,600rpm. Exceptional figures by anyone's measure, but not Sportec's it would seem.

The tweaks have increased power to 298kW at 5,800rpm and torque to 544Nm at 2,650rpm. That makes it about as powerful as the previous-generation BMW M5 (E39) and as potent as the Porsche Panamera S. Performance numbers are 4.2 seconds for the 0 - 100km/h sprint, down from the standard 4.6 seconds.

More dynamic and styling upgrades are being developed at Sportec's base in Höri, Switzerland. If this is Stage One then we wait with bated breath for the next stage. The conversions are covered by a guarantee for the balance of the manufacturer's warranty.

Max Auto Updates - 24/08/2009

PIECHA Design Mercedes-Benz SL-Class R230



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=827

If you love the new Mercedes SL but hate the redesigned headlights, PIECHA Design has a body kit for you.

Unlike most conversion packages, the Avalange RS body kit restores the four-eyed look of the pre-facelift model. While some of us would be more than happy to stop at that point, PIECHA Design also offers LED daytime running lights, aggressive side skirts, and attractive 20-spoke alloy wheels. Out back, the SL can be outfitted with a redesigned rear bumper with a massive diffuser.

While pricing information wasn't released, expect to pay a healthy premium for the styling enhancements.

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TECHART new Porsche Boxster/Cayman tuning program



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=828

Tuning firm TechArt has released a new package for both the Porsche Boxster and the Porsche Cayman facelifts. Amongst the upgrades are a pair of TÜV certified aerokits incorporating LED daytime runners, as well as carbon fiber interior touches, and sport springs.

Bodywork includes a front spoiler, body colored spoiler lip, side sills, and freshened up rear end. TechArt optimized the aerokits in a wind tunnel, making them as aerodynamic as they could. Developments from the testing helped to increase the downforce at multiple points on the car, including at the back where a rigid rear spoiler and apron help keep the car on the road at high speeds.

Other items include either 19- or 20-inch aluminum wheels that keep the brakes visible, and a customized set of sport springs. On either vehicle, the chassis can be dropped by up to 30 mm, depending on the customers' demands. Automatically adjusting daytime lights also dim when a turn signal is switched on.

Inside, TechArt uses one of a pair of carbon interiors in tandem with aluminum pedals, three-spoke steering wheel, and lit entry sills. The company also offers a wide variety of customized interiors that use any number of leather materials, colors, and seams.

Pricing was not revealed in a release from the company.

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Crashed cars to 'call' for help?

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=829

Car makers could be forced to install technology into new European cars by 2014 that would automatically call emergency services in the event of a crash, the European Union's executive said on Friday.

The eCall system can save the lives of people who are unconscious or confused about their location after an accident, but it has failed to take off due to worries about the costs.

Although the standards and technology are ready and 15 countries have given it their backing, Denmark, France, Ireland, Latvia, Malta and Britain are not ready to commit, the European Commission said in a statement.

"If the eCall roll-out does not accelerate, the Commission stands ready to set out clear rules obliging governments, industry and emergency services to respond," said European telecommunications commissioner Viviane Reding.

"I want to see the first eCall cars on our roads next year," she added in a statement.

The Commission said it presented a strategy for introducing the system in all new vehicles across Europe by 2014, starting from next year.

It estimated the system could save 2 500 lives annually.

Some more paintball marker ideas

Again... played a bit with this nice tool - http://pimpmygun.doctornoob.com/app.html

If I ever decide to buy a Tippmann X7, I might have it in either or both the following configurations.

Max Auto Updates - 21/08/2009

Aarto blamed for 'chaos'

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=824

Traffic authorities in Pretoria have no idea how many traffic fines are issued.

Furthermore, some fines are issued with incorrect dates, and then withdrawn. Photos which are clearly taken in daylight, state the time of the transgression as 02:00 in the morning.

These are just a few of the incongruities which Gauteng motorists have had to deal with since the commencement of the new Act on the Administrative Adjudication of Road Traffic Offences (Aarto) in Pretoria and Johannesburg.

'Chaos'

"It's chaos and people seldom or never get answers to their questions," said René Venter, manager of Avax SA 466, which pays traffic fines on behalf of companies, on Thursday.

Avax SA 466 pays more than 15 000 fines per month on behalf of clients.

This week Venter sent 96 clients' identity numbers to traffic authorities in Pretoria, in order to find out how many traffic fines there were against their names.

"The answer was 88 fines, but I received 488 Aarto fines from the Tshwane metro council. They simply don't know how many fines they've issued," she said.

A large furniture business, for whom Venter pays fines, can't renew any of its trucks' vehicle licenses, since two orders were issued by the Tshwane metro council, for fines which - according to them - haven't been paid.

According to Venter, the fines of R125 and R250 were paid on May 28.

Lack of staff

Venter feels the main problem is the lack of staff to handle payments of Aarto fines in the two metro councils.

"There is only one person in Pretoria who processes and records payments of Aarto fines on behalf of the metro council," said Venter.

This person works for the Road Traffic Management Corporation (RTMC) in the Tshwane metro council's traffic department.

Venter says fines are issued 60 and 90 days after the transgression, while Aarto fines must be issued within 40 days.

"The fines are illegal," she said.

On Thursday the RTMC did not want to answer questions regarding Aarto.

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R100 million in fines may be canned

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=825

More than R100 million worth of fines and summonses which have been issued under the Administrative Adjudication of Road Traffic Offences Act (Aarto), may be cancelled as they were issued illegally.

The National Metropolitan Police Chiefs Forum recommended this week that the minister of transport does not implement Aarto countrywide, before various serious problems which are currently being experienced, are solved.

These problems could lead to all fines and summonses which have already been issued in accordance with Aarto being cancelled, since the issuing thereof is a transgression of the Administrative Adjudication of Road Traffic Offences Act.

'Catastrophic consequences'

According to a report sent by the forum to Transport Minister Sibusiso Ndebele and the Road Traffic Management Corporation countrywide implementation of Aarto will have "catastrophic" consequences.

This report lists shocking problems with Aarto, including e-NaTIS's inefficient handling of payments, the unlawful collecting of fine payments, and the wrongful distribution of summonses and fines, which leads to losses of millions of rands.

These problem have already been discussed in technical meetings for over a year, "but still remain unsolved".

Aarto was launched as a pilot project in the Tshwane metro council area in September last year, and in the Johannesburg metro council in February this year.

The aim was to handle the administration of traffic transgressions, to ensure that motorists obey the road traffic rules, and ensure that fines are paid.

Inefficient

According to the report, an inefficient Aarto has, since its implementation, resulted in only 14% of all fines being paid, while the issuing of fines has dropped by between 30% and 50%.

"It is possible that this problem is caused by the restrictions placed on speed law enforcement zones. Due to a judicial oversight, speed law enforcement can only be done in 60, 100 and 120km/h zones. Law enforcement in 70, 80, 90, and 110km/h zones can't be done legally."

No misdemeanours under Aarto can be prosecuted legally. It's also impossible to issue summonses to transgressors who choose to go to court.

"According to Aarto, drunk drivers can't be legally arrested, unless they made a traffic transgression at the same time."

The NCMPF also says e-NaTIS can't handle all payments. Therefore data must be inserted manually under Aarto, which means thousands of such insertions are in arrears and incorrectly issued.

The "corrupt" addressing system of e-NaTIS means that 60% of all notices of transgressions are returned, which leads to R5m in losses per month in postal expenses.

"The...post office can't handle the volume of mail...and does not comply with the requirements of Aarto."

Confusion

According to the report, the collection of fine payments is "impossible" for local municipalities, since the parties involved transgress various laws which organise municipal financial management.

There is also confusion in the metro police, the police, the courts and the public over Aarto.

"Not one of the metro police services (countrywide) can handle the complicated Aarto project volumes and confusing legislation. National implementation should only happen after next year."

Logan Maistry, Ndebele's spokesperson, said the minister is "looking at all the Aarto issues".

"Ndebele will have a look at the report on Friday when he returns from Angola.

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Opel's fate in the balance

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=826

The fate of Opel hangs in the balance as General Motors is poised to pick a buyer for the European carmaker after months of negotiations.

GM's board of directors could recommend either Canadian carmaker Magna's bid for Opel or that of Brussels-based financial investor RHJ International.

Sources close to the matter have told Reuters the board will address the topic later on Friday.

The US carmaker, which emerged from bankruptcy protection on July 10, this week agreed to sell its Saab car business to a tiny Swedish luxury carmaker, the first in a series of big sales the US group is planning as it slims down.

Political row

Talks to sell Opel have lasted for months and have become a political hot potato ahead of German elections in September because a deal will entail billions of euros in aid from European governments as well as thousands of job cuts.

German Chancellor Angela Merkel and the German states that host Opel plants have come out clearly in favor of the Magna offer because they think the Canadian automotive group's expertise can save more of the 25 000 Opel jobs in Germany.

Magna's co-CEO Siegfried Wolf said last week that the Canadian company and its Russian partner Sberbank had reached an agreement in principle with GM over a contract to buy 55 percent of Opel, raising hopes of a deal.

But GM's top negotiator for the Opel deal, John Smith, has repeatedly cited the positive aspects of RHJ's offer, which he says would be easier to implement than Magna's plan.

The field of bidders narrowed to two when Italian carmaker Fiat and China's Beijing Automotive (BAIC) dropped out.

Merkel reiterated in an interview with a German newspaper her preference for Magna's offer and said she was "very skeptical" about the prospects for RHJ.

Aid

In a last-ditch effort to push for Magna's bid, Germany has also offered to provide 4.5 billion euros ($6.4 billion) in state aid for Opel, without waiting for other European countries to chip in, if GM chooses Magna.

Opel trustees who oversee a majority stake in Opel have to approve any decision. Billions of euros in aid from European countries with Opel plants are riding on the decision.

German Economy Minister Theodor zu Guttenberg said it was too early to say Opel was saved even the sale process wraps up quickly.

"In my view you will be able to celebrate the rescue of Opel only when it is clear that Opel has established itself as a competitive company on global markets," he told the Financial Times Deutschland newspaper, adding this would certainly not be the case in the next few weeks or months.

Max Auto Updates - 20/08/2009

2010 Porsche 911 GT3 RS facelift revealed



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=822

Porsche has officially unveiled the facelifted 2010 911 GT3 RS.

Designed to be the ultimate rear-wheel drive sports car, the RS features a modified version of the GT3's 3.8-liter boxer engine. Peak output climbs to 331kW, which is 11kW more than the standard GT3. Backed up by a short-throw six-speed manual transmission, the new 911 GT3 RS should accelerate from 0-100 km/h in four seconds, before hitting a top speed in excess of 314 km/h.

Other performance tweaks include a wider front and rear track, a revised suspension management system, active engine mounts (which adjust their stiffness to reduce drivetrain shuffle), and an optional lithium-ion battery (it weighs 10 kg less than a conventional lead battery).

In terms of styling, the RS features a unique two-tone paint scheme, extended fender flares, 19-inch wheels, a center-mounted titanium exhaust system, and a massive carbon-fiber rear wing.

The GT3 RS will debut at the Frankfurt Motor Show next month with sales starting in Germany in January 2010.

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Taxis to strike over Bus Rapid Transit System

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=823

Taxi drivers and operators across the country will strike from September 1 over the implementation of the Bus Rapid Transit system.

"We are calling for a total stoppage of public transport for the taxi industry," SA National Taxi Drivers Council secretary-general Philip Taaibosch told a meeting of industry players in Johannesburg on Wednesday.

"The strike is to register the concerns of the taxi operators in Johannesburg with support which will be coming from all other provinces."

The Bus Rapid Transit system was expected to start running in Johannesburg at the beginning of September. Taaibosch accused the city of ignoring the taxi industry's concerns and negotiating in "bad faith".

"We believe that our operators in Johannesburg are not protected and we believe that... the City of Johannesburg are negotiating in
bad faith.

"We cannot support the BRT in its present form, not without the involvement of the elected leaders from the taxi industry."

"Open-door" policy

City of Johannesburg spokesman Nthatisi Modingoane denied allegations of bad faith and said the city had an "open-door" policy.

"The city's position is still... that the negotiations are as transparent as possible and as inclusive as possible. The doors are open."

Taaibosch claimed the taxi representatives in those negotiations were not legitimate leaders.

He said more explanations were needed and the implementation of BRT should be suspended until taxi operators were satisfied. Going even further, Taaibosch said if authorities had been serious about negotiating with the taxi industry "they would have given the taxi
industry the right of first refusal".

"Where these buses are going to run is where taxis have been running historically, and they are now going to infringe on the operations of other people, and those people will then be obliged to defend their operations," Taaibosch charged.

The industry had previously claimed their routes as intellectual property. This argument had not been tested in court and had been
rejected by many legal experts.

The city has also offered the taxi industry a stake in the BRT system but this was also rejected by Taaibosch.

"Remember, we never wanted a stake in the BRT."

Peaceful strikes

However, Modingoane said some taxi operators were prepared to "engage" in the BRT. A interim management corporation had already
been formed with the goal of giving taxi operators "ownership" of the bus system.

The BRT would continue regardless of the taxi industry, he said.

"We are committed to revolutionising public transport in Johannesburg. BRT is not just about a small number of people. Our mandate is to help the people of Johannesburg."

Taaibosch and chairman of the Johannesburg Southern Suburb Taxi Association Ralph Jones promised that the strikes would be peaceful.

Jones said that past demonstrations in Pretoria had been conducted without incident.

"So at the end of the day, ladies and gentlemen, there will not be any violence."

He however didn't mention strikes by taxi drivers in Cape Town earlier this year which left several people injured and caused hundreds of thousands of rands worth of damage.

Max Auto Updates - 19/08/2009

GM and Koenigsegg sign 100 percent sale of Saab

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=819

GM has announced they have signed a stock purchase agreement with Koenigsegg Group AB, for 100% of Saab Automobile AB.

The agreement is contingent on several pre-negotiated conditions, including Swedish government support (funding) and transitional assistance from GM. GM and Saab will also continue to share technology, under a variety of license and service agreements, for "a defined time period."

According to GM's European President, Carl-Peter Forster, "This contract is an important step in the journey to a potential deal." He added that, "Saab's great cars, its unique design, safety- and engine-technology, as well as its excellent brand image, combined with Koenigsegg Group's unique combination of innovation and entrepreneurial spirit, bode well for a successful future for the brand. We will continue to work with all parties to define the final details and ensure a fast closure of the deal, which we expect to take place in the next few months. The closure of the deal is contingent on the funding commitment from the European Investment Bank (EIB), guaranteed by the Swedish government."

Christian von Koenigsegg echoed Forster's comments by saying, "We have now concluded another important step in realizing the great potential of Saab. Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable' by making it profitable. We will revive Saab's Swedish heritage of ecological sensitivity, safety, design innovation and ‘fun to drive' experience!"

Jan Åke Jonssson, Managing Director of Saab, said: "This is excellent news for everyone connected to Saab around the globe. This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all new Saab 9-3X."

With Saab scheduled to exit reorganization shortly, both companies expect the deal to be completed by the end of the year.

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SEAT Leon CUPRA R revealed



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=820

SEAT has announced it will be introducing the new León CUPRA R at the Frankfurt motor show next month and the model will be the most powerful León available Europe-wide.

The León CUPRA R will come with VW Group's 2.0 liter TSI engine juiced up to a comfy 195kW. That number is achieved partly through the use of a new high-pressure fuel injector and SEAT promises the model will still meeting EU5 emission norms. The only León models available that top that are the very limited León Cupra 310 Limited Edition with 225kW sold exclusively in the Netherlands, and the German market-only Leon Cupra Edition with 207kW. The standard Leon Cupra comes with the 2.0 liter TSI dialed to 177kW.

The León CUPRA R will also feature SEAT's XDS system, a self-locking differential that works with the ESP system to improve traction. Seat promises the León CUPRA R will deliver an "easy torque transmission and elasticity" while clocking in its 0 to 100 km/h sprint at 6.2 seconds and maxing out speed at 250 km/h (probably electronically limited, although SEAT does not say).

Consumption is a reasonable 8.1 liters/100 km, considering all the dust-making capabilities of a 195kW hot-hatch.

19-inch wheels with five double-spokes wrapped in 235/35 tires and a new set superior brakes have been added to compliment and match the performance being generated from under the hood.

On the inside are the bucket sport seats upholstered in gray Alcantara as well as white LED lights on the instrument panel to give the Cupra R a proper touch of sportiveness.

Pricing info and a release date have not yet been made available.

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Chrysler creditors sue Daimler

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=821

Chrysler LLC's creditors have filed a lawsuit against Daimler AG charging that the German automaker unlawfully stripped billions of dollars in assets from the US carmaker before selling it to a private equity firm.

In the suit, filed Monday, the creditors claim that in the months leading up to the 2007 sale of most of Chrysler to Cerberus Capital Management LP, Daimler undertook a restructuring of Chrysler that removed key parts of the company for little or nothing in return.

"This restructuring and sale served Daimler's interests well, enabling it to extract the best possible terms in its sale of the debtor, while eliminating billions of dollars of actual and contingent pension and other liabilities," the creditors said in their lawsuit. "But the transaction caused the debtor (and its creditors) to suffer grievous harm."

Julia Engelhardt, a spokeswoman for Daimler, Tuesday said the automaker is confident that the lawsuit's accusations are without merit and will defend itself against them.

Cerberus, then Fiat

Specifically, the creditors say Daimler split off Chrysler's US and Canadian financing units in order to get a better sale price from Cerberus.

As a result of the split, the assets of the financing units were not subject to Chrysler creditors' claims when the automaker filed for bankruptcy protection on April 30.

Under a deal backed by the US government, the bulk of Chrysler's assets were acquired by a group led by Italy's Fiat Group SpA and emerged from bankruptcy protection as a new company about 42 days later.

Chrysler's secured lenders received $2 billion for their $6.9 billion in debt, while most of the company's unsecured creditors have been forced to seek compensation from the assets left over from the sale - known as "Old Chrysler." It's doubtful that there will be enough left to pay their claims.

The lawsuit was filed with the New York bankruptcy court overseeing the liquidation of the pieces of Chrysler not included in the sale to Fiat. It seeks damages to be determined through a trial plus interest and certain legal fees.

'New Chrysler' not involved

Chrysler Group LLC, the new company created by the sale to the Fiat-led group, is not involved in the lawsuit.

Daimler has recorded billions in losses related to Chrysler since selling off most of its stake to Cerberus. That firm's acquisition of 80.1% of Chrysler dissolved a stormy "merger of equals" made in 1998 between Daimler-Benz and Chrysler Corp. But in November 2008, Cerberus accused Daimler of intentionally misleading it before it sold the controlling stake to the private equity firm in a $7.4 billion deal.

In April of this year, Daimler reached a deal to divest its remaining 19.9% stake in Chrysler LLC.

Max Auto Updates - 18/08/2009

Volkswagen to Buy 42% of Porsche for €3.3 Billion



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=814

The wheels are rolling towards either a merger or a buyout between Volkswagen AG and Dr. Ing. h.c. F. Porsche AG. The two companies are in agreement that VW will buy a shareholding of 42% in Porsche AG for about €3.3 billion, the 100% subsidiary of Porsche SE using cash. The amount is based on the enterprise value of Porsche AG which is €12.4 billion. There will be a cash capital increase of VW AG during the first half of 2010 when new preference shares are issued. Such a transaction will be approved by Porsche SE.

Both entities hope to have engineered a full merger by 2011 if such a move is approved by the regulatory authorities. If not then VW will exercise an option in their agreement to buy out the remaining shares in Porsche AG for a complete takeover. The State of Lower Saxony will reserve the right to appoint two members of the supervisory board as well as to maintain an ordinary shareholding of at least 15% in Volkswagen.

These new proposals may finally put an end to the saga of Porsche and VW which culminated in the "smaller" entity almost buying the bigger one. Now the roles are reversed following the departure last month of former Porsche CEO Dr. Wendelin Wiedeking and his Chief Financial Officer.

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BMW E92/90 M3 GTS3 Limited Edition by Vorsteiner



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=815

Vorsteiner has unveiled their new GTS3 styling package for the BMW E90/E92 M3.

Consisting of a new front bumper and hood, the package gives M3s an aggressive appearance without being overly garish. The bumper has an expanded center air intake, a downward extension (that lowers the car visually), redesigned side air vents, and a replaceable one-piece carbon fiber front splitter. Options include carbon fiber construction, "dry vacuumed woven plastic" construction, and a two-piece carbon fiber front splitter.

Available exclusively for the E92 M3, the GTS3 hood features dual air vents, a "power dome", tighter lines, and rolled carbon fiber edges. Like the bumper, the hood can also be ordered with carbon fiber construction (single or dual sided).

Pricing information wasn't released, but style as good as this rarely comes cheap.

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Opel deal 'not imminent'



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=816

General Motors and the German government played down hopes on Friday of a quick decision on the sale of the carmaker's Opel unit, and Berlin reiterated its support for Canadian bidder Magna.

German Chancellor Angela Merkel, speaking at a news conference with Russian President Dmitry Medvedev in the Black Sea resort of Sochi, said talks on Opel's future had reached a decisive phase but reaching a quick deal would be tough.

"Such negotiations are sometimes difficult and you need patience," Merkel said. "Therefore I am not able to say today when they will be concluded - we would like this to be as soon as possible."

She reiterated her support for a bid from Magna, an auto parts group whose bid is backed by Russian investors.

GM's top negotiator for the sale, John Smith, said his company still needed to compare a new offer it received from Magna on Thursday with an "attractive proposal" from rival bidder, Belgium-based financial investor RHJ.

Although Germany has made clear it is up to GM to decide the victor in the bidding showdown, Berlin is being asked to cough up billions of euros in finance guarantees to the winner and so it wields considerable influence.

Some GM executives are believed to favour the RHJ offer over Magna's but Berlin, the four German states where Opel has plants and Opel unions all favour Magna.

State aid

GM's Smith said on a blog that the US carmaker was awaiting input about what state aid it could expect from European countries that host Opel plants before management presents its findings to GM's board of directors next week.

"After the GM board makes its recommendation, the Opel Trust Board will be asked for its approval. So, there is more to consider, and more to do, before an agreement for Opel is reached," Smith said.

A spokesman for the German Economy Ministry confirmed that the government's Opel task force would meet on Monday to examine the offers from Magna and RHJ, but was vague about when decisions could come.

"It is primarily up to GM to evaluate the offers," Steffen Moritz said at a news conference. "We will look at the contracts but I can't say when this process will be finalised."

Hopes for a swift deal between Magna and GM grew on Thursday when the Canadian company said that it had reached an agreement in principle with GM management over a contract to buy 55% of Opel, together with Russian partner Sberbank.

But Smith said GM had not reached an agreement with Magna.

Merkel said GM, Berlin, the state governments and other European governments would need to come to a decision together.

"No one can decide anything without the other, so there is a need to come to an agreement," she said.

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GMSA head retires

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=817

President and managing director of General Motors South Africa (GMSA) and African Operations Steve Koch is set to retire to return to the United States, the company said on Friday.

"Steve spent the last two decades of his 40-year career operating outside the United States, and will take advantage of the current provisions offered under the special retirement window in North America to reconnect with family back home," said Nick Reilly, executive vice president of General Motors International Operations.

Koch's retirement would become effective on October 1.

He began his career in the automobile industry in 1969 and became president of GMSA in July 2007.

"Steve's replacement will be announced at a later stage," GMSA said.

General Motors recently restructured its operations into two regions, North America (including the US, Canada and Mexico) and GM International Operations (GMIO), which includes all operations outside North America.

Based in Shanghai, China, GMIO will be operational from 1 September. GMSA will be included in this new structure.

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Gemballa updates GT600 AERO 3 kit for Cayenne



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=818

German tuner Gemballa has expanded its GT600 AERO 3 Sport Design Kit for the 957 Porsche Cayenne Turbo.

New options include a Magic White paint color and headlamps in a Black Magic design. There is also a slew of "Gunmetal"-styled cosmetic options such as the carbon window frames, "powder-coated" mesh grill, carbon mirror frames and doorhandles, and the powder-coated wheels too. Finally, there's the black wheel bolts in a plasma coating.

The standard AERO 3 sport design kit, previously done for the 955 Cayenne Turbo, is now updated to fit the 957. The core elements of which are the engine kit for a 600 hp output, electronic suspension-lowering, sport exhaust, 22-inch Gemballa Racing wheels as well as the in-house (Gemballa) brake system.

The kit also comes with its own optics features such as the GT-styled bonnet and a logo kit. On the inside is an interior design kit and SPC seats for the front.

Pricing for the new options was not made available.

Some ideas for my paintball stuff

Some of the ideas I have :)

Installed new Osram Globes

Got the stuff, and added them to the car... installed the H11 fogs and the W5W's in the rear numberplate lights and interior front courtesy lights.

Couldn't for the life of me access the front park lights, so will get GM to change them while it goes in to get the brake discs and pads replaced. :)

Max Auto Updates - 14/08/2009

Hofele GTS-Look for Audi A3 Cabrio released



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=811

German tuner Hofele has a few added touches for your Audi A3 cabriolet.

For the face of the always adorable A3 convertible, the single-frame front bumper provides for a GTS-look, featuring large air intakes on each end. The GT-bumper also includes a fog-light kit which can be ordered separately.

Hofele also has its own S3-like, sporty front grill in both black and silver for those who want something more than just a change in bumper.

At the back, a new rear apron is offered which can be simply glued to the existing one of the A3 non-top. This "Diffusor" is made out of PKG material and is offered for both a quad sport exhaust system or for the serial one from the standard production model.

Caps for the headlamps washer are also to be had and the Hofele badge to be placed next to the A3 moniker on the rear hatch offers another subtle touch.

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Speed cameras 'a necessity'

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The overall objective of traffic law enforcement is to save lives, Transport Minister Sibusiso Ndebele said on Thursday.

"Speed remains a major contributory factor to motor vehicle collisions in the country," he said in a statement.

"Increased traffic volumes have made it no longer safe, for both officers and motorists, to carry out manual traffic enforcement."

He was responding to claims that traffic law enforcement was more about making money than contributing to road safety.

This followed recent media reports alleging officers were undertrained, equipment was sub-standard, trapping was carried out illegally and speed cameras were illegally used.

State-of-the-art equipment

Ndebele said camera law enforcement was a necessity, with the primary purpose to address road safety and nothing else.

"Cameras constitute not more than 30% of all law enforcement activities and must comply with certain prescribed norms and standards."

He said that in order to reduce road traffic offences and road crashes, traffic officers would soon be provided with wireless, hand-held pocket computers which would enable continuous, fast, real-time electronic access from the road side to the National Traffic Information System.

The specially developed software would enable officers to record traffic violations and road crashes electronically at the roadside via a central server to a traffic offence register.

A variety of traffic law enforcement reports would be generated from the system, including the monitoring and evaluation of the performance of individual officers and traffic authorities.

The transport department said there were about 700 000 road accidents a year in South Africa, resulting in about 15 000 deaths and 50 000 serious injuries, at a cost of almost R43 billion.

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GM reaches deal over Opel



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Magna and its Russian partner Sberbank have reached agreement in principle with General Motors management over a contract to buy 55% of GM's European unit Opel, Magna's co-CEO Siegfried Wolf told Reuters on Thursday.

The boards of directors of GM and Canadian automotive group Magna still need to approve a deal before trustees who control 65% of Opel and its British sister brand Vauxhall could give their final consent, he said.

"At 4:30 this morning Austrian time an agreement on all issues was reached at a management level between Magna, Sberbank and General Motors," Wolf said in an interview, adding "one change or the other" was made in its over 600-page-long offer.

"We submitted a copy of a final contract that can be signed and implemented. I don't want to be overly optimistic -- and the contract will be certainly be examined in all its aspects -- but roughly speaking there are no unresolved issues with management any more."

The agreement does not necessarily mean that competing Opel bidder RHJ International is out of the running, though, since the Belgian private equity firm has also reached an accord with GM's chief negotiator.

While Magna plans to expand Opel's reach to return to profitability, RHJ aims to shrink Opel.

"We are still very much in the race," an RHJ spokesman said.

After weeks of hard bargaining, Wolf said his consortium was able to iron out the last details such as access to GM's technology or which markets are open to the new Opel.

"Opel would have the freedom to decide where products will be designed and engineered. It would have a say whether certain things can be developed independently without having to pay royalties, such as engines or transmissions designed for specific applications," the Magna co-CEO said.

Magna's Russian industrial partner, GAZ, would also have access to GM's intellectual property and could buy Sberbank's 27.5 percent stake in Opel.

"There is no lock-up period in which Sberbank has to hold its stake in 'NewOpel' for a minimum amount of time but there is a very clear process that requires GM's approval if it were sold to anyone other than GAZ or Russian state bank VEB," Wolf said.

In a compromise, Magna will not take a direct financial interest in GM's Russian business.

"Although Opel and Chevrolet share the same dealers in Russia, Magna will not own any equity in the sales and distribution network, but work will be shared in areas like back office in order to make use of synergies," he said.

Both sides agreed that Opel vehicles cannot be sold in the United States or in Korea, where Chevrolet-maker GM Daewoo is based. Opel is also barred from entering Canada for two years.

In a surprise, GM agreed that Opels could be sold in China except for two model lines -- possibly the Insignia and the upcoming Astra -- which can be marketed after five years.

Cheers in Germany

"This is the best solution for Opel and Opel workers," top politicians in the German state of Rhineland-Palatinate, which hosts one of four Opel plants in Germany, said in a statement.

The overwhelming support for Magna in Germany from key figures such as Chancellor Angela Merkel and state leaders suggests that the Opel Trust will likely sign off on a deal with the Canadian auto parts supplier and Sberbank.

GM CEO Fritz Henderson confirmed that Magna submitted a revised offer to GM and the German government's Opel Task Force, which both would evaluate over the next several days.

"We need to take that feedback as well as what the German government is prepared to do in terms of financing and brief our board. I anticipate that briefing would be probably next week," Henderson said in Detroit.

RHJ's offer has enjoyed more support in Detroit than in Berlin, but the German role in financing any deal gives Germany significant clout in the decision.

Wolf said the next step was agreeing how to fund the deal, which includes an equity component of 500 million euros and 4.5 billion euros in loans guaranteed by European governments.

"We submitted two proposals to the German government that differ in a variety of terms and we are in the middle of negotiations over the exact structure," he said.

Worried about the 25 000 Opel jobs in Germany ahead of an election next month, Berlin put up 1.5 billion euros in bridge finance for a ring-fenced Opel in May, just before the US parent slid briefly into bankruptcy.

Wolf reaffirmed his time frame to turn around the carmaker that could involve roughly 10 000 job cuts across Europe.

"We aim to make Opel profitable roughly 24 months after we would assume full responsibility of the carmaker," he said.

Max Auto Updates - 13/08/2009

New VW, Porsche entity could be called Auto Union



http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=810

Porsche and Volkswagen have reached a tentative agreement for a merger of the two legendary German automakers. The new automotive enterprise may come to be called "Auto Union" and will likely be led by current VW CEO Martin Winterkorn.

After Porsche's failed attempt at a takeover of VW Group, and after having run up a huge debt in the process, the two automakers have come together to settle their differences and attempt to create a single car making entity with the Porsche brand remaining intact.

Under the terms in the outline agreement, VW would come to buy a 49 percent stake in sportscar-making division Porsche AG from the family-owned Porsche Holding SE, which is also a dealership group in Europe. Porsche already owns 50 percent of VW's voting stock. The combined company would generate about 120 billion euros a year in sales.

Porsche has gotten into trouble with its pursuit of VW and run up a debt of around 10 billion euros. The company is valued by analysts as being worth between 8 and 11 billion.

The German state of Lower Saxony, which owns a veto-wielding 20 percent stake in VW, is expected to retain that same share of the new automotive group.

Details still need to be worked out between the two automakers and nothing is assured. But one board member did tell Reuters that "questions over valuation have been resolved."

Max Auto Updates - 12/08/2009

'Strike season' hits carmakers

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=808

A strike is looming at the Ford Motor Company of Southern Africa, the National Union of Metalworkers of SA (Numsa) said on Tuesday.

In a statement, Numsa said it had declared a dispute at Ford's operations in Silverton and had referred this to the Commission for Conciliation, Mediation and Arbitration (CCMA) for intervention.

On August 6 the CCMA awarded the union a certificate to embark on protected strike action.

"This came after a lengthy process in which the union engaged and tried to convince the intransigent Ford management to realise that brutalisation of work, undermining agreements, destroying jobs and eroding worker benefits is a highly dangerous deed," Numsa said.

Outsourcing

The union alleged that Ford had identified "non-core" areas and had embarked on outsourcing.

"The company destroyed quality jobs which it replaced with atypical forms of employment such as fixed-term contracts and labour brokers," the union stated.

It added that affected workers lost their benefits and jobs were placed on the line.

According to Numsa, Ford was guilty of "poor planning and incompetent management."

Numsa said that workers were sent home on numerous occasions on short-time and temporary lay-offs simply because of the shortage of
parts.

Engine plant

The union was now demanding the termination of all labour brokers and subcontractors and an investigation into "incompetence and poor planning" that had led to financial loss on the part of workers after they were unduly laid-off.

Numsa said Ford workers were still on a two weeks short-time/temporary lay-off break.

"Upon returning the union will democratically consult them about the strike."

Numsa said its members in Ford's Port Elizabeth-based engine plant were also disgruntled about short-time and lay-offs and this could lead to a strike there as well.

The Ford Motor Company could not be reached for comment.

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New car market bleeds jobs

http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=809

The number of people employed in South Africa's new vehicle manufacturing industry fell in the second quarter of 2009 to a level last seen 22 years ago, the National Association of Automobile Manufacturers (Naamsa) said on Tuesday.

In its quarterly review submitted to the director-general in the department of trade and industry, Naamsa said compared to the 32 392 positions at the end of the first quarter 2009, aggregate industry employment declined by 1 925 jobs during the second quarter
of 2009 to 30 467 jobs.

The magnitude of the extremely difficult operating environment, both characterised by sharply lower domestic new vehicle sales and lower export sales, was illustrated by the decline in headcount of 4 496 jobs during the first half of 2009, compared to a decline for 2008 as a whole of 2 566 jobs, Naamsa said.

"Currently, total industry employment is at levels last witnessed 22 years ago," it said.

Single shift production

Naamsa said manufacturers currently operated predominantly on a single production shift basis, while some operated double shifts in selected areas such as machining, press shops, paint shop operations and body shop.

"During the quarter, most vehicle assembly operations were characterised by a shortened production week," it said.

On a quarterly basis, sales of new cars and light, medium and heavy commercial vehicles registered further sharp declines in the second quarter of 2009 compared to the corresponding three months of 2008.

"The depth and severity of the year-on-year quarterly falls in domestic new vehicle sales remain without precedent in the history of the South African automotive industry and underline the extent of the crisis facing the entire value chain," Naamsa said.

Turning to exports, it said the impact of the global financial and economic crisis and the resulting reduced demand in South Africa's major export markets was reflected in the sharply lower industry new vehicle export sales which, during the first half of 2009, declined by 36.0% in aggregate volume terms.

Extremely difficult year

Looking ahead, Naamsa said 2009 was turning out to be an extremely difficult year for the entire South African automotive industry.

"All sectors of the South African automotive industry - retail, auto parts manufacturing and vehicle production - continue to experience severe and unprecedented viability challenges."

Naamsa said the operating environment in all three sectors of the industry, during the first half of 2009, had deteriorated substantially and was only expected to show modest improvement, domestically, during the second half of the current year and, internationally, once the severe global financial and economic crisis dissipated.

"Improvement in the domestic environment is dependent on a revival in consumer expenditure, lower inflation, aggressive interest rate reductions and fiscal stimulation.

"Internationally, any improvement is dependent on a return of confidence and the stabilisation of financial institutions and markets... this is only likely to occur in 2010," Naamsa said.