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Moneyweb reports that SA’s automotive industry has proposed a host of liquidity relief measures to President Cyril Ramaphosa to alleviate the industry’s serious cash flow challenges and ensure its survival post Covid-19.
The proposals would also safeguard the lives of more than 500,000 employees across the automotive industry value chain during the lockdown, a report on the economic impact of Covid-19 on the industry indicated. The report was released by the National Association of Automobile Manufacturers of SA (Naamsa) on Thursday. It warned that the Covid-19 lockdown could lead to job losses of between 21% and 30% in SA’s automotive industry, which supported more than one million people in the formal sector. “The real effect will be known with time lags,” the report advised. Forecast total domestic sales for this year – at 405,000 units – is 24.5% lower than the 536,611 units sold in 2019, and will be the lowest level of domestic sales since 1995. Total domestic production is projected to slump to 466,500 units, its lowest level since 2004 and 26% lower than the 631,983 vehicles produced in SA last year. However, Thursday’s Naamsa report said: “Taking into consideration the supply chain disruptions, possible global lockdown extension in South Africa and abroad … the South African automotive market might take a [volume] knock as high as 40%.” The liquidity relief proposals made by the industry to government are set out in the Moneyweb report.
- Read the full original of the report in the above regard by Roy Cokayne at Moneyweb
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