A number of car brands are pulling out of Mzansi following what can only be described as a catastrophic year for motor car sales. Estimates will place the market at about 30% down on 2007, which is in line with worldwide market losses. Casualties have already been counted, the first being SEAT which parent Volkswagen SA pulled out of the market.
Now McCarthy Holdings, importers of Foton, Chery and Meiya products are getting rid of Meiya from their portfolio. “Volumes have dropped and for us to continue such a low-volume project and sustain it into the future is just not worth it,” McCarthy CEO Brand Pretorius told Business Report.
The company will also sell some of its Value Serve franchises that it had bought from Shell two years ago. Gonow’s viability is also in doubt after the Chinese bakkie/ pickup brand apparently defaulted on a R600 000 invoice owed to Auto Carrier Transport, a business involved in the shipping of goods and services. Gonow sells the X-Space utility and it starts at about R100 000 for the cheapest and R160 000 for the most expensive double cab.
With current economic conditions; high interest rates, ever-increasing car prices and stagnant average salary levels, other brands are expected to follow suit and leave Mzansi. One of them may well be a big name.
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