Mercedes-Benz South Africa delivered outstanding results yesterday that included a 45% increase in total group revenue to take full-year earnings to R65.8-billion.
The East London-based auto assembler produced 106200 C-class passenger cars last year, of which only 24608 went into the South African market and the rest were exported to 80 countries. In the local luxury passenger car segment, Mercedes sales finished 3000 units ahead of its next competitor.
The company reported profits for the year of R4.65-billion, with its wage bill for its 5200 employees reaching R2.46-billion and taxes totalling R640-million.
Chief executive Arno van der Merwe said the strong performance underpinned MBSA’s continued commitment to the country and the city, in the face of the potential threat posed to investment decisions as a result of political and economic upheaval.
He said the company's export -oriented business model created a hedge against the deterioration of the rand against other currencies, especially the dollar. “It is this business model that puts the company in the position where we are operating as a net exporter.
“We are very well-positioned to manage currency and market volatility.”
MBSA officials were buoyant about the commitment of employees to the company mission, citing an attendance record of 99.7% for the year and high retention figures of staff.
Van der Merwe said the company appreciated the stable business environment in the auto sector which had come about through agreement between government and the industry on the Automotive Production and Development Programme.
“We engage with government on many platforms to ensure that we achieve stable policy environment.” However, he said it was important to provide investors with future prospects they could rely on.
“Investors were concerned about the political and economic upheavals within the country.
“It does certainly make investors think about what they are facing and how they should operate in this country and we certainly see those sentiments in aspects of our business.”
He said it was important for business to take a long term view on the decisions it needed to take. “If we run our business always taking account of events on a week by week basis in a developing political and socio-economic environment, we will find ourselves too often going from one side to the other.”
After being in SA for 70 years, MBSA had seen many different phases of change.
“We have always been a good citizen. We have recently invested significantly into the country, especially from a manufacturing point of view where our investment is performing excellently by global standards.
“We have a good business here and we are committed to this country. And we will continue to do our business here given that history.
“We will consider that first and foremost in the light of our recent and current performance to dictate the kind of decisions we might take in the future.
MBSA reports 45% increase in earnings
The East London-based auto assembler produced 106200 C-class passenger cars last year, of which only 24608 went into the South African market and the rest were exported to 80 countries. In the local luxury passenger car segment, Mercedes sales finished 3000 units ahead of its next competitor.
The company reported profits for the year of R4.65-billion, with its wage bill for its 5200 employees reaching R2.46-billion and taxes totalling R640-million.
Chief executive Arno van der Merwe said the strong performance underpinned MBSA’s continued commitment to the country and the city, in the face of the potential threat posed to investment decisions as a result of political and economic upheaval.
He said the company's export -oriented business model created a hedge against the deterioration of the rand against other currencies, especially the dollar. “It is this business model that puts the company in the position where we are operating as a net exporter.
“We are very well-positioned to manage currency and market volatility.”
MBSA officials were buoyant about the commitment of employees to the company mission, citing an attendance record of 99.7% for the year and high retention figures of staff.
Van der Merwe said the company appreciated the stable business environment in the auto sector which had come about through agreement between government and the industry on the Automotive Production and Development Programme.
“We engage with government on many platforms to ensure that we achieve stable policy environment.” However, he said it was important to provide investors with future prospects they could rely on.
“Investors were concerned about the political and economic upheavals within the country.
“It does certainly make investors think about what they are facing and how they should operate in this country and we certainly see those sentiments in aspects of our business.”
He said it was important for business to take a long term view on the decisions it needed to take. “If we run our business always taking account of events on a week by week basis in a developing political and socio-economic environment, we will find ourselves too often going from one side to the other.”
After being in SA for 70 years, MBSA had seen many different phases of change.
“We have always been a good citizen. We have recently invested significantly into the country, especially from a manufacturing point of view where our investment is performing excellently by global standards.
“We have a good business here and we are committed to this country. And we will continue to do our business here given that history.
“We will consider that first and foremost in the light of our recent and current performance to dictate the kind of decisions we might take in the future.
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