Ricochet News

Automotive Industry Sheds 393 Jobs in Third Quarter

Oct 27, 2014
Automotive Industry Sheds 393 Jobs in Third Quarter

Aggregate employment in the automotive industry at the end of September totalled 28 988 a decline of 393 jobs or 1.3% compared to the second quarter.

The Quarterly Review of Business Conditions released by the National Association of Automobile Manufacturers (Naamsa) says aggregate industry headcount dropped from 29 381 to 28 988, quarter-to-quarter.

Naamsa says a recent study commissioned by NEDLAC into the SA automotive manufacturing industry put total projected current employment for vehicle and component manufacturers at 141 595 positions.

The study put the projection at 32 444 people employed in the vehicle manufacturing sector and the balance of 109 351 employed in the component manufacturing sector.

Naamsa says the average monthly industry employment number for 2013 was 30 121, compared to 30 120 in 2012 and 29 180 in 2011.

The Association says that various manufacturers are operating double shifts in areas such as machining, press hops, and paint and body shop operations, adding that one manufacturer operates on a three-shift basis and others are considering three-shift operations.

Naamsa says average capacity utilisation levels “rose sharply in most sectors following the normalisation of production at manufacturing plants following the strike in the metal and engineering industry during June/July 2014”.

It adds that current installed production at the major car and light commercial vehicle producers is “about 850 000 vehicles” a year.

The third quarter’s figures show that over the three-month period utilisation of capacity ranged from a low of 59% for cars and a high of 100% and between 63% and 87% for light commercials, with the average 73.1% and 74.4% respectively.

The average for medium commercial vehicles was 94.3% in the third quarter and 84.7% for heavy commercials, which was higher in both instances than the second quarter. - MetroMinutes


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