Is it now time to invest in a donkey-breeding project

Nevertheless, Jacques Brent, Vice President Sales and Marketing, Ford Motor Company of Southern Africa, indicated that Ford Motor Company did enjoy a relatively strong performance in February with 6,047 units sold, and that sales were up by 9.6 percent over January 2008. (No indication was given as to whether these were transit vans or small family vehicles.)

Sales & Marketing Director, Mike Glendinning, for Volkswagen of South Africa, revealed that the car manufacturer had sold 5,961 passenger cars in February, adding that “New car sales are under pressure from both steadily increasing interest rates, in circumstances where an all-time high level of household debt prevails, and from what has become a significant erosion of the real spending power of households as general

inflation escalates steadily.” Mr Glendinning also blamed the weakening Rand as well as the Eskom power crisis both of which he said made the sharp decline taking place in new vehicle sales "more understandable."  (Again, no indication was given as to whether these were Kombis or the smaller VW vehicles?)

Although reasons given were numerous, including rising fuel costs and high interest rates, both of which simultaneously affect international markets, it would be interesting if the car manufacturers were able to reveal which of these vehicles were sold to private buyers, or sold as fleets of company vehicles or if, on the other hand, whether the sales were singularly commercial types? Such vital information would clearly indicate the direction in which the market is heading, and furthermore, which vehicles are most popular, and why?

Perhaps during December, family cars were purchased as Christmas presents and the buyers billed only in January? Has anyone ever done a feasibility study on which month has the highest births in the country because from these statistics can be deduced when the next generation of teenagers are likely to pass their first driving test. Teenagers are not always given a new car, but once the teenager has inherited the family jalopy, Mum may benefit by a new car?  Or, have the soaring household debts pushed such plans to the back burner these days?

 (Comment based on Report received from JOHANNESBURG, RSA 4 March 2008 Sapa)