http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=804
South African banks are starting to relax their credit lending criteria on motor vehicle loans, which is expected to spur activity in the stagnant domestic automotive market.
This is according to Chris de Kock, executive head of sales and marketing at Wesbank, one of the country's leading vehicle credit providers.
Wesbank's vehicle sales confidence indicator for the three months to end-July, released on Wednesday, showed a marginal improvement in business confidence among the 250 car dealerships surveyed.
The latest confidence index recorded a score of 4.3 out of 10, up from the all-time low of 4.2 reported in May 2009.
"Confidence is returning and consumers are more prepared to make long-term debt commitments," said De Kock.
"It's still very tough out there, but we are on the road to recovery and we don't expect confidence to move backwards," he added.
Real growth in car sales is expected only in 2010, according to Wesbank.
The biggest factor impeding activity in the auto sector is credit lending. Consumers either battle to get loans approved or cannot afford repayments.
However, De Kock said the situation is taking a turn for the better.
"I have spoken to my colleagues at the other banks and there is definitely a willingness among them to start loosening their credit criteria," he said.
However, De Kock stressed this new wave of credit lending will be done in a prudent manner.
"The type of credit we are doing now will be very different from the credit that was granted before the National Credit Act," he said. "It's a completely different realm of credit."
The National Credit Act, which was implemented in June 2007, aims to promote more responsible lending criteria among local financial institutions.
At present Wesbank approves 29% of all credit applications.
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Union shares industry concerns
http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=805
The National Union of Metalworkers of SA (Numsa) is "gravely worried" about the deteriorating situation in the automotive assembly industry and associated component manufacturing.
Numsa said on Thursday employment in this sector had plummeted drastically.
"Just in the first quarter of 2009 alone, the automotive assembly plants shed 2571 permanent jobs.
"This excludes a much bigger number of short-term employment contracts that were terminated," Numsa said in a statement.
During the same period, the automotive industry component manufacturing sector shed an even greater percentages of jobs, Numsa added.
"Salaried employees were cut by 7.4%, hourly employees by 11.6% and temporary employees by 53%," it said.
Those who were still employed were working reduced hours, Numsa said.
"Retrenchments have pressed workers income to zero while reduced hours of work leave them with insignificant take-home pay to survive," the union stated.
"There are accumulating arrears on medical aid schemes, and on housing... foreclosures are increasing."
Manuel made wrong call
Numsa said the data released on Tuesday by the National Association of Automobile Manufacturers of SA that new vehicle sales had plummeted by 27.4% in July came at "the worst of times".
The union accused the former finance minister Trevor Manuel of making the wrong call on the global crisis when he said the US sub-prime woes would not impact on South Africa.
Numsa demanded that the SA Reserve Bank (SARB) cut interest rates "drastically" to "stimulate the economy and mitigate the negative impact of the ongoing crisis".
The union said it was still calling on the SARB to cut the repo rate by 400 basis points.
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RIEGER's new styling kit for Astra H and Corsa D
http://www.maxauto.co.za/CntView.aspx?CatID=26&CntID=806
RIEGER Tuning has unveiled new styling packages for the popular Opel Astra H and Opel Corsa D.
The Astra H is outfitted with a new front bumper, optional LED daytime running lights, aggressive side skirts, and a new rear bumper that boasts a sporty rear diffuser. Other styling tweaks include headlight masks, a sport exhaust system with four tailpipes, H&R lowering springs (which reduce ride height 30mm), and 19-inch Brock B21 alloy wheels.
While the Astra only looks "so-so", the RIEGER Corsa D has far greater appeal thanks to its stylish front spoiler lip extensions and attractive side skirts. Out back, there is a modified rear bumper, a new rear diffuser, and a sport exhaust system with dual oval tailpipes. RIEGER also equipped the car with a KW coilover suspension kit and 19-inch Brock 17 RC white-polished alloy wheels.
Both styling kits are constructed from high-quality ABS plastic and are TÜV approved.
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