South African Car Workers End Strike
News: South African car workers have ended a three-week strike after accepting a revised wage offer from employers including Volkswagen, Ford Motor and Toyota Motor, reports Auto News. Secretary General of National Union of Metalworkers of South Africa (Numsa) Irvin Jim announced the end of the nationwide strike and urged all members to resume work. Numsa has agreed a wage increase of 11.5% for 2013, 10% for 2014 and 10% in 2015 with night shift and transport allowance also part of the settlement. The strike has been costing the industry around US$68.66mn each day.
BMI View: Despite the weak domestic outlook, South Africa registered a 7.5% y-o-y increase in new vehicle sales to 53,997 units in May 2013, up 3,750 units from the 50,247 sold in May last year, according to figures released by the National Association of Automobile Manufacturers of South Africa (NAAMSA). Outperforming the segment in May were sales of LCVs, bakkies and minibuses, which grew at 11.1% y-o-y, or by 1,425 units, bringing the year-to-date aggregate to 14,031. In May 2013, sales of heavy trucks and buses recorded an increase of 8.6% y-o-y to 136 units. Sales of medium commercial vehicles faced a decline of 0.3%.