The end of empire for VW

If Germany’s largest car company hopes to survive, it will have to change rapidly, because it can no longer afford to treat its supercar brands like vanity projects.

There is no automotive conglomerate with a more compelling portfolio of products than the Volkswagen Group. From the Amarok to the Up, and everything in between, the group's organogram is unrivalled. 

Volkswagen (VW) was not always dominant, mind you. In the early 1990s, it was struggling to rival Japanese compact cars from Toyota and Honda for design inspiration and build quality. 

By the early 2000s, however, it owned Bugatti, Bentley and Lamborghini. Perhaps most impressively, VW had elevated the Golf to a popular premium product, something that most marketing experts once considered impossible… 

Building the empire 


The Veyron project was taken on to create something the world would be in awe of.

The story of VW’s ascent centres on a single engineer: Ferdinand Piëch. The grandson of Porsche’s founder – who was also named Ferdinand – Piëch was a brilliant engineer without any discernable people skills. He obsessed about perfection in all aspects of engineering and product, like no other car company boss ever had – or ever will again. 

Issues that made no obvious difference to other car company CEOs were unacceptable to Piëch. He is the reason why contemporary Volkswagen models have such neatly packaged interior wiring. And if you ever saw how untidy wiring was allowed to dangle from underneath dashboards and glove boxes before Piëch became influential, you’ll appreciate his demanding commitment to detail. 

Piëch’s desire was for VW to dominate the global automotive market, but not merely by virtue of outright sales numbers. He wanted to build the best cars. And instead of crushing rivals, he wished to create an empire – an automotive dynasty, where affordable volume cars would subsidise outrageous hypercar projects, the kind that would have no prospect of making any money. 

Ruthless but inspired, Piëch successfully built the VW empire, but, quite poignantly, the German multinational is now – a mere year after his passing – moving in a different direction than he envisioned.  

Can supercar brands pay their own way for VW?


Prior to VW's takeover of Bugatti, the EB110 was the brand's attempt to revive the name.

The Veyron was by far Piëch’s most famous project. As a Porsche descendant, Piëch respected the lineage and history of storied brands. After Bugatti's doomed revival in the early 1990s, VW bought the French carmaker in 1998. Piëch's goal was to create modern Bugattis that would be every bit the contemporary vision of the company’s founder, Ettore Bugatti. 

Impossible was never a concept in Piëch’s mind, much less his vocabulary. The Veyron engineering team was simply given a set of outrageous design parameters and strict deadlines. Anyone who hesitated was replaced. Piëch's management style makes the celebrated South Africa-born Elon Musk look like a snowflake by comparison. 

The outcome of Piëch’s brutal supervision of Bugatti was the Veyron. To many, it remains the pinnacle of internal-combustion hypercar design. But now it appears that VW’s most exclusive brand has outlived its relevance and purpose. The fact is that Bugatti was always going to struggle to make the transition from internal-combustion hypercars to hybrids and, eventually, battery power. 

So much of its brand cachet, mystery and Olympian sense of engineering achievement is directly related to its models' W16 engines and, in particular, the uniqueness of this configuration and its multiple cylinder count. Piëch’s genius was to test the theory of a narrow-angle V6 in VW’s VR6 motor, allowing a volume car to subsidize R&D costs, eventually making the W16 engine viable. 

Selling the W16 engine brand, to a battery car company?


The W16 configuration packed 4 turbochargers together claiming 1 000 bhp (745 kW) in a conservative state of tune.

Unfortunately, a battery-powered design will never, but never, be able to match the drama and fury of a Veyron’s W16 engine. The Veyron justified its stratospheric asking price by virtue of the exclusivity of its power output, engine layout and performance. Hypercars are truly unrivalled in terms of linear acceleration and driveability. Much the same can be said of the Chiron. 

However, Bugatti no longer has a monopoly on insane acceleration… Rimac and, to a lesser degree, Tesla proved that battery-powered vehicles could be sickeningly fast too. Beyond its dramatic sound signature, an internal combustion supercar no longer has the monopoly on performance, and that presents a huge problem for VW’s most prestigious brands. 

The brutal truth is that Bugatti no longer has a viable business case. Evidence of this is that its most talented employees are already leaving, ostensibly in anticipation of the inevitable sale of Bugatti. 

Stephan Winkelmann has returned to Lamborghini after only two years as CEO at Bugatti. Winkelmann is highly regarded and was expected to finish his career at Bugatti, yet VW’s most senior management could not see the fulfilment of that professional journey for him, preferring to reinstate him at Lamborghini. 

An even more telling development is VW’s decision to redeploy Stefan Ellrot, Bugatti’s technology and development boss. Ellrot is leaving the hypercar brand to become chief technical officer at Volkswagen – he will be responsible for the flagship brand's compact cars, which of course are being electrified at a rapid rate. 

Had Bugatti been on stable footing, with its future product strategy well secured, it would not be losing key staffers. The most likely scenario is Bugatti eventually being sold to Rimac and then rebranded as an electric hypercar brand. Bugatti needs a futureproof powertrain to survive and Rimac could use the Molsheim assembly facility, which is highly customisable and has a pool of skilled technical labour. 

The issues afflicting Bugatti are nearly all transferable to Lamborghini, multiplied by the larger scale of VW’s Italian asset. After missing its 2020 emission target, VW has been stung with a R1.8-billion fine, something that can’t be allowed to happen each year going forward – and the company’s supercars brands are compounding the problem. 

What does all this mean for your VW?


This all means that the VW groups finest engineers over the last 25 years are now being deployed on its everyday cars.

The struggle for VW to keep all those luxury brands that were acquired during Piëch's reign relevant will have very little influence on your next Golf or T-Cross. 

No components or engineering techniques are shared between VW’s volume passenger cars and Bugatti or Lamborghini models. The only transfer of any skill or technique within the VW Group was German management discipline and engineering quality control, which measurably benefitted Lamborghini and Bugatti. 

The automotive fantasy of Piëch is no longer sustainable for the survival of VW as a whole. The company's current CEO, Herbert Diess, understands that to secure the future of VW, and by implication Audi and Porsche, he needs to forget about protecting so-called vanity brands such as Bugatti, Lamborghini and even Bentley. 

No VW boss will ever match Piëch’s ruthlessness, but Diess has shown a willingness to replace senior engineering staff who underperform. Deploying people from Bugatti closer to VW’s traditional passenger car development, allows the best engineers to influence cars that most customers can actually buy. 

Toyota has displaced VW as the world’s largest car company by virtue of a strong performance in arguably the most difficult trading year on record. In 2020, Toyota sold 9.53 million vehicles; VW managed 9.31 million. Within those numbers, Toyota has not extended its R&D budgets to deliver a fleet of new electric vehicles; specifically, EVs that cost huge sums of money to produce, but don't generate any profits – yet. 

With its robust global bakkie and SUV business, Toyota continues to generate strong profits with relatively unsophisticated platforms and no pressure to produce electric powertrains. VW does not have this luxury – its customers mostly live in cities and regions where there are regulations that strongly encourage the uptake of electric vehicles. 

The future for VW will be battery-powered vehicles. Modest in size and undramatic in appearance, these future VW electric cars are the antithesis of anything that Bugatti or Lamborghini produces. 

Electric powertrains and data, instead of pluperfect shutlines and amazingly sonorous V10-, V12- or W16 engines, will determine VW’s survival. The great irony in all of this, as Bugatti fades in relevance and importance to VW’s overall business, is that Ettore Bugatti had a personal electric vehicle, for use on his estate, way back in 1931.

Related content:

Last Round of Golf?

GWM P Series could be the perfect Chinese bakkie

Why new car prices could soon fall

BMW Opens Up About 4 Series Design 

Why the Ford ST brand died in SA

What could bakkies be like in 2025?

How the AmaFord changes everything

245 kW Volkswagen Golf 8 R Plus Coming? 

A high-power version of Volkswagen Golf R might be on the way if a British owner’s manual is anything to go by. 

South African Volkswagen fans are eagerly waiting for the local arrival of the Golf 8 GTI in the second quarter of 2021 but the potent Golf 8 R is due towards the end of the year and will pack no less than 235 kW and 420 Nm of torque. Those are impressive numbers and the Golf R is expected to dash from zero to 100 kph in 4.7 seconds. 

However, there could be a more powerful Golf 8 R Plus in the pipeline as indicated in a British owner's manual, as discovered by volkswizard, which lists a 2.0-litre TSI ‘DNFF’ engine with power outputs of 245 kW and 420 Nm of torque which implies that a more potent Golf R could be unleashed at some point. However, there is no official confirmation from Volkswagen as to if or when this supposed Golf R Plus will come to fruition.

For now though, the standard 235 kW Golf 8 R will have to do and if a Golf R Plus version is to be introduced, it will likely come to market later on in the Golf 8’s life cycle. 

Local specification and pricing for the Golf 8 R will be revealed closer to launch but late last year we postured that the Golf 8 R could be priced very close to the R1-million mark by the time it reaches our shores, but that remains to be seen…

As always, we will keep you updated as soon as more information becomes available. 

Buy a new or used Volkswagen Golf R on Cars.co.za

Related Content 

Volkswagen Amarok V6 TDI (2021) Review

VW Boss Confirms Halo Trinity EV

 New Cars from Volkswagen in 2021

Spy Shots: 2021 Volkswagen Polo (Updated)
 

 

 

 

 

Ford to invest a further R15.8 billion into SA

Ford South Africa is set to invest over $1 billion in upgrading its Silverton manufacturing plant. A resulting 10 000 jobs will be created by this project.

Ford South Africa currently builds the Ranger bakkies and Everest models in SA. The current Ford plant services both the local market as well as the export market and is one of 5 plants around the world which produces the Ranger.

With the new Ranger set to be revealed in 2023, Ford has taken the opportunity to both upgrade its plant technology as well as building new facilities. The new facilities will introduce state-of-the-art manufacturing technologies and in-depth employee training that will ensure that the new Ranger is a top quality product. This will turn the Silverton plant into one of the biggest manufacturing plants Ford has outside of the United States.

The plant will also be energy self-sufficient plant by 2024 thanks to projects such as a solar panel laden outdoor parking lot which shades over 4 000 parking pays for Ford employees.

The new facility will also increase the capacity of the plant from its current 168 000 vehicle production to 200 000 vehicles annually. The new Ranger platform will be built in-house, reducing costs on logistics and complexity associated with importing a frame and then merely assembling it locally. The new frame will also allow for the VW Amarok to be built locally when it also arrives in 2023. There remains no intention to build anything other than the current Ranger and Everest models.


Ford has already begun major developments within the Tshwane special economic zone to be ready for the 2023 new Ranger.

In order to attain these goals, Ford will construct a new body shop with the latest robotic technology and a new high-tech stamping plant, both of which will be located on-site for the first time. Both facilities will modernize and streamline the integrated manufacturing process at Silverton while contributing to higher quality and reducing overall cost and waste.

The new stamping plant will use a high-speed line to produce all the major sheet metal components for the new Ranger. It includes a fully automated storage and retrieval system for stamping dies, which will be housed innovatively in the roof of the facility, thus eliminating related labour-intensive processes. In addition, a modern blue-light scanner system that scans surfaces for imperfections will ensure the highest-quality final product leaves the stamping plant.

Extensive upgrades also will be made to the box line, paint shop and final assembly to improve vehicle flow within the plant, along with the expansion of the container and vehicle yards.

Ford also will build new vehicle modification and training centres – the latter developed to ensure all Ford employees are equipped with the knowledge and skills required to maximize the efficiencies of the enhanced Silverton facilities.

“The extensive upgrades and new state-of-the-art manufacturing technologies will drive efficiencies across our entire South Africa operation – from sequenced delivery of parts direct to the assembly line, to increased vehicle production line speeds and precision of assembly to ensure the world-class quality that our customers expect,” said Andrea Cavallaro, director of Operations, Ford’s International Markets Group.

Some R5.5 billion of the R15 billion investment will go towards vendor tooling at major suppliers so that the supply chain is equipped to meet the increased production requirement.

The investment will introduce 1 200 jobs within Ford itself and a further 10 000 within the greater automotive sphere.

In addition to this, Ford also is working closely with all three spheres of government and relevant state-owned entities such as Transnet, in developing the Gauteng Province – Eastern Cape Province High Capacity Rail Freight Corridor. This will be a full-service line linking the Silverton Assembly Plant with Port Elizabeth, which is home to Ford’s Struandale Engine Plant.

The GP-EC High Capacity Rail Freight Corridor will channel all of Ford’s inbound and outbound logistics exclusively through Port Elizabeth to support the higher production volumes. It is projected to create thousands of jobs within the value chain.

Related content

Is this the world's fastest bakkie?

Toyota Corolla Cross to be built in SA

More Nissan Navara production could be heading to SA

Spy Shots: 2022 Lamborghini Urus Evo

The Lamborghini Urus is set to receive an update and be badged as Evo. Here's what's coming.

Picture credit: S. Baldauf/SB-Medien. We have paid for these photos and at the photographer's request, have watermarked them.

What you see here is the updated Lamborghini Urus Evo in the frozen Arctic Circle testing area in Scandinavia. While not many changes are expected, we can see there's a new-look front bumper with revised new air intakes. This platform is shared by the Volkswagen Touareg, Bentley Bentayga and Audi Q7/Q8.

The cabin is likely to receive some tweaks too, and the inevitable software updates. The powertrain is expected to be mostly carried over and for the record, the 4.0-litre twin-turbocharged V8 sourced from the Volkswagen Audi Group pumps out 477 kW and 848 Nm. Lambo claims a rather brisk 3.5 second sprint time to 100 kph, and top speed is a crazy 305 kph. It wouldn't surprise us if Lamborghini gives the updated Urus a bit more power and torque, purely for bragging rights. 

While the idea of a Lamborghini SUV is still controversial, there's no denying the market appetite for such a thing. Sales have been through the roof and it's easy to understand why. Not only is it the cheapest way to get into new Lamborghini ownership, but the practicality and seating for 4 adults makes it an easy choice for wealthy families.

Expect to see the updated Lamborghini Urus revealed late in 2021. 

Further Reading

Lamborghini SC20 Is a 1-Off Hypercar

Fastest SUVs in the World for 2020/21

Lamborghini Urus Hits 10k Milestone

Lamborghini Urus (2020) Launch Review

Next Mercedes-AMG C63 to pack 410 kW 

Before you moan that the next AMG C63 will forego its sledgehammer V8 for a 4-cylinder hybrid powertrain, expected outputs are far better than you ever imagined…

Mercedes-Benz is currently developing the new C-Class which is expected to be fully revealed this year. The C-Class will go to battle with the new BMW 3 Series and updated Audi A4 but the real performance showdown will take place at the pinnacle of the C-Class range where the AMG C63 and the more potent C63 S will take on the like of BMW’s M3 and Audi’s RS5. 

When news broke that the next AMG C63’s mighty V8 would be replaced with a 4-cylinder, 2.0-litre hybrid powertrain, AMG fans were, and probably still are, well and truly disappointed. 

Now, a report from Australia's CarAdvice cites UK's Car magazine reporting deeply impressive outputs for the new AMG C63. 

The Numbers Game


With a new hybrid powertrain, the next-generation C63 will pack impressive outputs!

Let’s dig into the numbers then, shall we? For the record, the current AMG C63 S produces an unruly 375 kW and 700 Nm from its formidable bi-turbocharged 4.0-litre V8 engine. The new BMW M3 Competition, which is due in South Africa soon, produces 375 kW and 650 Nm from its twin-turbocharged 3.0-litre inline-6 engine. Audi’s updated RS5 Coupe and Sportback will arrive locally in April 2021 and pack 331 kW and 600 Nm from its twin-turbocharged 2.9-litre V6 engine. 

With that in mind, let’s turn our attention back to the subject of this article, the new AMG C63. How does 410 kW and 800 Nm sound to you? Yes, that’s right, not too shabby afterall. Using the same 2.0-litre turbocharged engine found in the AMG A45 S with 310 kW and 500 Nm, but coupled with a 150 kW rear electric motor, a starter-generator mild-hybrid system and an electrically-driven turbocharger, the new C63 is expected to be a real performer. It does, however, remain to be seen if these outputs will be gifted to the C63 or C63 S. 

Those numbers are 35 kW and 200 Nm more than the new BMW M3! The C63 will feature Merc’s latest 4Matic variable all-wheel-drive system and using a 9-speed automatic transmission, acceleration from zero to 100 kph is expected to take just 3.5 seconds which is 0.5 seconds faster than the outgoing model. Top speed is pegged at 291 kph.

While those numbers are certainly impressive, the downside is that the hybrid system has added some 250 kg, taking the vehicles kerb weight to around 2-tonnes, even though the 4-cylinder engine is some 60 kg lighter than the outgoing V8 block. 

A 63 km electric-only range is also expected and fuel consumption is reportedly claimed at 3.0 L/100km which is a notable improvement from the previous 9.9 L/100km. The C63 will also feature wider rear tyres as well as a drift mode which will direct power to the rear wheels on command, much like the system offered on the larger Mercedes-AMG E63 S. 

It’s also worth knowing that the next C63 will be called the Mercedes-AMG C63 4Matic+ EQ Power Sport and is expected to be fully revealed before the end of 2021. The new C-Class range will be revealed earlier in the year with the C53 expected to offer in the region of 300 kW. 

As far as interior technology goes, you can expect to see Merc’s latest tech trickle down from the new S-Class which means that higher levels of overall luxury and interior execution can be expected. 

We will keep you updated as more details come to the fore. 

Does the new Mercedes-AMG C63 excite you now? 

Buy a Mercedes-Benz C-Class on Cars.co.za

Related Content

Modern Classic: Mercedes-Benz C55 AMG

News Cars from Mercedes-Benz in 2021

Mercedes-Benz debuts MBUX Hyperscreen

Brabus Unleashes A45 S

Audi RS4 & RS5 (2021) Specs and Price

Three very fast Audis, priced to go.

Audi has revealed pricing for two of its most keenly anticipated local model updates.

The company's refreshed RS4 Avant, RS5 Coupe and Sportback might only officially go on sale by April 2021, but Audi SA has committed to pricing for both.

Core specification for both of these RS-specification cars has not changed for the 2021 model year, although local followers of the Audi brand will notice the slight updates.

The RS5 now features factory fitted matrix LED headlamps (an option on RS4 Avant), while an array of the exterior theme styling finishes are available.

Perhaps the most notable exterior design change concerns RS5 Coupe, which now has a composite roof, lowering its centre of gravity and theoretically improving its cornering agility. The composite roof trims 4 kg of vehicle mass, too.

Audi’s renowned cabin architecture is complimented by RS-specific sports seats, trimmed in Nappa leather, with contrast stitching. Infotainment is serviced by Audi’s 12.3-inch virtual cockpit and sound, by a Bang&Olufsen speaker system.

Powering both the RS4 Avant and RS5 is Audi’s proven 2.9-litre twin-turbocharged V6 engine, boosting 331 kW and 600 Nm. Audi’s famed quattro all-wheel-drive system and ZF’s eight-speed automatic transmission combine to deliver 0-100 kph in only 3.9 seconds, whilst the academic top speed is 280 kph if owners select the option for derestriction.

As you would expect from premiums RS models, these cars are equipped with Audi’s advanced sport suspension components. Owners who wish to have more active turn-in behaviour can opt for a sport differential, fitted to the rear axle.

Audi is marketing its updated RS4 Avant at R1 296 000, followed by RS5 Coupe at R1 394 500 and the RS5 Sportback at R1 409 500.

For those most ardent Audi RS customers, the B9 RS4 Avant is the model with inarguable heritage and a fantastic blend of performance and practicality. It is also, ironically, the most affordable of all three these new RS models.

Pricing as of Feb 2021

Audi RS4 Avant R1 296 000

Audi RS5 Coupe R1 394 500

Audi RS5 Sportback R1 409 500

Related content

New Audi Cars for SA in 2021

Audi RS4 Facelifted For 2020

Audi A4 (2021) Review

Ford to run Google infotainment from 2023

Next Ford Ranger to respond to ‘hey google’?

The next generation of Fords will run Google software for their infotainment systems. Ford is not the first to commit to the tech giant’s operating system and follows in the wake of Polestar, Volvo, Renault, GM and the new Stallanitis group. Ford’s system will still be called Sync 4 when it arrives and the coding will be made to look like Ford’s own but the underlying architecture will feature all of Google’s abilities.

Google Assistant will be built into the system with voice recognition. Ford will also use Google Maps for its native navigation, while Google Play Store will allow users to download car-specific apps for music/streaming etc. There is also bound to be remote apps for your Android phone that will allow you to control certain functions from afar, such as turning on the lights to find your car in an underground parking lot or setting the climate control prior to accessing the car. Remote parking could also be possible for the next-gen Fords.

Read: How to get Android Auto working in SA

The system caters for over the air updates so new software and updates can quickly be sent to the vehicle and installed while it's parked overnight.

The vehicle software hasn’t been finished yet so we’re not sure if it will look like Android Auto or whether a new design is in the works. The good news is that the system will still cater to Apple users with Apple Carplay still functioning as usual.

Ford Australia will be doing most of the technology development for the new Sync 4 system. The only question that remains is to what happens when you lose signal to the data services in the middle of the bush? There are feasible solutions to this such as downloadable Google Maps, where as long as you have GPS signal, you can navigate your way out.

The system is set to come online in 2023, just in time for the new Ford Ranger. Whether the VW Amarok, which is being built alongside the Ranger will have a similar infotainment system is unclear as VW hasn’t yet signed into ay agreement with Google.

Related content

FCA and PSA Merge to Become Stellantis (Updated)

New Ford SUV To Replace Kuga in SA?

Toyota working on battery Cruiser (Updated)

Cylinders replaced by cells. 

Update: The electric Toyota Land Cruiser has gone into production, but there's a catch – it's not going on sale to the public. Earlier, we reported an Australian mining company was testing an electric Land Cruiser for its underground operations. Given that ventilation in an underground scenario is a tricky affair, emissions from vehicles compound the problem. The solution is electrification and now the demand will be met. Australian engineering firm GB Auto penned a deal with $250 million to convert and supply up to 2000 vehicles over a 4 to 7 year period. The Dutch company Tembo 4×4 will be supplying the electric hardware.

CarAdviceAu reports the electric Land Cruiser will cost $125 000 (about R1.4 million) and the vehicles will have a 72 kWh battery powering a 110 kW and 250 Nm electric motor. Given the size of the motor which is substantially smaller than the internal combustion motor it replaces, batteries are stored in the bonnet as well as in the space where the fuel tank used to be.

The world’s least likely candidate for powertrain electrification has been revealed.

Unquestionably the hardiest of all bakkies, Toyota’s Land Cruiser 70 single-cab, is undergoing a battery test cycle in Australia.

Although the Land Cruiser 70 is unavailable in most developed markets, these bakkies remain enormously popular in Australia, for many of the reasons they are such legends in the South African environment: durability.

Despite the current Land Cruiser design dating to 1984, the integrity of its engineering has allowed this bakkie to become essentially timeless. For hardcore mining, construction and agriculture applications, the Land Cruiser 70 remains unrivalled.

The idea of replacing its six- or eight-cylinder diesel engine options with a battery pack and electric motor, would appear very odd, but that is exactly what Toyota is prototyping.

Partnering with one of the world’s biggest mining companies, BHP, Toyota’s Australian engineers are attempting to retrofit an electric power- and drivetrain to the Land Cruiser 70 single-cab.

Although Toyota is not at liberty to reveal who it is sourcing the batteries from, or what their energy density is, the Land Cruiser 70 electric looks very capable.

One of the benefits of replacing its conventional engine options with a battery pack and electric motors will be a significantly reduced centre of gravity. This should give the bakkie better stability at cruising speeds, on gravel roads, and make it less intimidating to drive at extreme pitch and roll angles, off-road.

For BHP the primary objective is to reduce the fire risk at its mining operations. Although diesel fuel has a much lower flash risk than petrol, many of these bakkies do venture underground, into the mining infrastructure, where any fire is potentially catastrophic.

With a battery power source and electric power, the risk of fire is negligible.

One of the interesting modifications that can be seen on this Land Cruiser electric prototype, is the wraparound plastic bullbar. It appears to be moulded from a high-impact polymer and looks great, whilst also providing most of the protection that you would expect from a steel bullbar, at a much lower mass.

Related content

Lordstown Teases Electric Workhorse (w/video)

The Hummer is Back as a double-cab

562 kW Electric Rivian Bakkie Goes Desert Drifting [w/video]

New car sales in SA: January 2021

The first month of the year is generally when households are most under pressure financially. How did our first January under Covid-19 lockdown conditions go down? We sift through the numbers.

January saw a decline in overall car sales that was in line with what Naamsa experts expected. The slow recovery is still in progress though as the numbers continue to trend upwards (from the huge dip in April and May last year). The LCV market continues to defy the massive sales bleed of Covid-19, showing that buyers of bakkies and taxis are still replacing or renewing vehicles regularly and that leisure vehicle buyers are taking bakkies more seriously as everyday vehicles.

Exports continued to grow during January on the back of huge local investments from most of the big players in the local automotive manufacturing industry.

New car sales summary for South Africa – January 2021

  • Aggregate new vehicle sales of 34 784 units down by 13% compared to January 2020.  

  • Passenger car sales of 23 853 units down by 18% compared to January 2020. 

  • Light Commercial Vehicle (LCV) sales of 9 301 units down by 4.9% compared to January 2020. 

  • Exports of 22 771 units up by 39.7% compared to January 2020 

Sales outlook

According to Naamsa “For the first quarter of 2021 trading conditions in the new vehicle market are expected to remain challenging due to slow demand compared with the pre-COVID-19 first quarter comparison, exchange rate volatility and the negative impact on household expenditure by fuel and electricity price increases. However, considering the close correlation between new-vehicle sales and the country's GDP growth rate, the Reserve Bank’s forecast of a domestic economic growth rate of 3,6% for 2021 presents a favourable scenario for a sound rebound of the new vehicle market in 2021, from the exceptional low base in 2020. It should be noted that the 2020 new vehicle market recorded its lowest aggregate sales total in 18 years. The macroeconomic effects of COVID-19 will, therefore, continue to undermine business and consumer confidence and inhibit growth over the medium term. Although the current low interest rates, coupled with low inflation, could be regarded as building blocks to stimulate the new vehicle market, a full recovery to pre-COVID-19 new vehicle sales levels could take around three years.

Vehicle export numbers have been regaining momentum but in terms of a recovery much will depend on an improvement in the economic climate of the South African automotive industry’s main trading partners. Vehicle exports are important to the viability of the domestic automotive industry as exporting remains key to generate sufficient economies of scale and to achieve improved international competitiveness.

Related content

SA Petrol Price Increases for Feb 2021

How To Buy A Car If You Are Blacklisted

Match! An easy, convenient way to sell your vehicle

Best Used Cars in SA for Under R100k

Isuzu pouring more R&D into D-Max engines

All the focus going into smaller engine tech.

There is big news from the world’s biggest diesel engine producer.

Isuzu is planning a restructuring of its diesel powerplant range, with interesting consequences for bakkie fans of the brand.

The Japanese company has been the world’s largest supplier of diesel engines, for many years. But the new wave of electrification in passenger vehicles is changing Isuzu’s planning requirements.

Although battery-powered bakkies are only due to come online later this year, Isuzu is clearly recognising the influence they could have on its future market share. To ensure that all the very best Isuzu engineers are deployed to protect and enhance its profitable bakkie business, Isuzu is willing to outsource its large capacity diesel engine business.

Isuzu has signed a contract with Cummins, to supply the bulk of its truck engines. This allows the company’s R&D resources to be poured into D-Max engine development.

It might be a disappointment for Isuzu’s truck customers, but this is good news for the company’s loyal bakkie owners.

With more talented Isuzu engineers working on the D-Max engine line-up, expect improvements in power and configuration. Isuzu has also entered a working agreement with Volvo, regarding hybridisation.

This could deliver an exciting new range of hybrid powertrains for Isuzu’s D-Max and MU-X. Saving development and assembly costs on its big truck engines, will make it possible for Isuzu to extract all the potential from its 1.9-, 2.5- and 3-litre four-cylinder bakkie engines.

What the Cummins truck engine agreement gives Isuzu, is more freedom to pursue the development of its smaller diesel engines, which are of most importance to South African customers. Isuzu has a terrific legacy and reputation for durability, although the current bakkie engines are comparatively down on power, compared to Hilux and Ranger.

Related content

Isuzu MU-X (2020) Review

Local Isuzu D-Max postponed until 2022

Isuzu D-Max (2021) International Launch Review