NATIONAL ASSOCIATION OF AUTOMOBILE MANUFACTURERS OF SOUTH AFRICA

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                                                                                                                      7^th February, 2006  

To:     CHIEF EXECUTIVES OF NAAMSA MEMBER COMPANIES
          CONSTITUENTS OF THE MOTOR INDUSTRY DEVELOPMENT COUNCIL
          HEADS OF MARKETING AND SALES DEPARTMENTS
          NAAMSA STATISTICS COMMITTEE
          NAAMSA MIDP SPECIALISTS 

Ladies and Gentlemen, 

NEW VEHICLE MANUFACTURING INDUSTRY :
CAPITAL EXPENDITURE 2000 - 2006 

NAAMSA communication N8/1 dated 12^th January, 2006 - refers. 

Details of the industry’s capital expenditure, for the years 2000 through 2006 may be shown as follows –

Over the past two years, the strong Rand would have contributed to lowering the cost of imported capital equipment (machinery/production technology).
In the case of one major OEM, some capital expenditure originally earmarked for 2005 would have been carried forward to 2006 as work in progress. 

All the major seven OEM’s and two truck manufacturers participated in the survey.  Seven manufacturers project increased capex for 2006.
 

Regards,
Vermeulen

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