Archive for March, 2009

Mercedes-Benz South Africa (MBSA) to shut plant for weeks at a time

Mercedes-Benz South Africa (MBSA) plans to close its East London production plant for four weeks in April and for a further four weeks from the last week in May.

In addition, it anticipates only operating its plant for four days a week in May, according to a production status note sent to all its suppliers this week.

These production cutbacks come as the international automotive industry is in a crisis because of a severe slump in sales caused by the global credit crunch.

MBSA has already had two days without production in March. It plans to have another one on April 3.

Spokesperson Annelise van der Laan said the cut in production required a four-day closure before the Easter weekend but current economic pressures required more than average flexibility in production planning.

She said production plans were firmed up no more than a month in advance and further plant shutdowns had not been finalised.

MBSA was in discussions with the National Union of Metalworkers of SA (Numsa) on possible additional shutdowns and ways to minimise the impact on employees.

Van der Laan said MBSA was reviewing various options to reduce the financial impact on hourly-paid workers.

MBSA had almost 2 200 hourly-paid employees at its East London plant and labour costs comprised, on average 50 percent of the total build cost of a C-Class.

MBSA retrenched 150 of its 800 salaried staff effective from the end of February but no further retrenchments of salaried or hourly paid staff are planned.

Roger Pitot, executive director of the National Association of Automotive Component and Allied Manufacturers, said MBSA’s plans would worsen the crisis for automotive component manufacturers.

The new Mercedes-Benz C-Class had not been in production that long, Pitot said, and MBSA’s plant had been closed for four months during the changeover to the new mode.

Suppliers had invested for the new model, with volumes expected to be high.

He said about 100 first and second-tier suppliers were probably supplying MBSA and they would all definitely suffer.

It was hard to understand why MBSA had kept working a five-day week in the first quarter of this year, he said, when all domestic manufacturers had cut back on production.

“It would have been much better to work a four-day week in the first quarter and then they would not have had to take out so much production now. Unfortunately, it’s suppliers that suffer,” he said.

It was possible that it could push some suppliers into closure, especially those who were dedicated or dominant MBSA suppliers, Pitot added.

Numsa regional secretary for the Eastern Cape Irwin Jim said on Thursday the union was still engaging MBSA on this issue. Whatever happened, it needed to ensure its 3  000 members at the plant were not negatively affected. “We are demanding full pay for non-production days,” he said.

Jim said automotive companies were going through “a rough time” and needed help and must approach government for assistance.

“This crisis cannot be transferred to workers because they have no control over what is happening,” he said.

Jim said workers had already been affected because of working short time and layoffs.

Sourced via busrep.co.za

Comparison: 2010 Honda Insight vs 2010 Toyota Prius

Were the economy what it was a year and a half ago when Wall Street was in full Go-Go-Mode, it’s doubtful anybody seriously shopping for an all-new Prius would give Honda’s new Insight a second glance. Sure, they look an awful lot alike, but understand, these are two starkly different automobiles. Different in size: Dimensionally, the Insight is a confirmed compact while the new Prius has expanded its interior volume enough to place it somewhere midpack in the midsize category. Different in hybrid technology: What they mainly share is battery chemistry. And different in cost, with a price spread big enough to drive a couple of mortgage payments through. Unfortunately, the economy has subsequently put this sort of simple thinking into a coffee grinder and pressed the top down.

 Today, most folks’ household budgets are getting the fine-tooth-comb treatment, and the sound of having most of the Prius’s mileage bang for a lot less buck has a rather nice ring to it. And to complicate things, Honda has baited its Insight’s hook with bodywork that’s so Prius-like it borders on copyright infringement.

A while ago, our late friend and Toyota hybrid guru, Dave Hermance, admitted Honda’s Integrated Motor Assist (IMA) was the better approach for low-cost cars (though he was quick to add that Toyota’s Hybrid Synergy Drive gains the upper hand as size and price increase). Well, Honda has finally pulled the trigger and built Toyota’s worst nightmare.

The Insight is the car your accountant would recommend-and maybe demand after reading that disastrous 401K statement of yours. Imagine paying $24 for a fill-up that gives you a 435-mile driving range. That got your interest, didn’t it? With a base price of $20,470 and a combined EPA mileage rating of 41 mpg, the Insight has to be the ultimate financial hedge against this wacko economy and seesawing oil prices. Whatever the hell happens, you’ll endure it nicely in an Insight.

And so should Honda. Powered by the pancaked combination of an 88-horse,1.3-liter four-cylinder engine and a 13-horse electric motor masquerading as a flywheel, the Insight’s mild hybrid machinery would at first appear to be fairly typical IMA fare. But it isn’t. Honda has gone berserk with the details, wringing cost out every way it can: miniaturizing components, axing the Civic Hybrid engine’s third i-VTEC cam mode, cutting the piston’s costs in half, and shrinking the battery pack. The result is that the Insight’s “hybrid premium” has been slashed 40 percent compared with the Civic Hybrid’s. Wow. 

Unfortunately, the cost-cutting is equally apparent on the road. In addition to its road noise (higher than you’d expect even in a sub-$20,000 car), the little engine adds a distinctive racket all its own when you put the stick to it. And the ride isn’t exactly spongeville either, as was astutely perceived by my three-year-old rear passenger strapped in his car seat: “Dad, you’re driving really rough!” It’s the car, young dude, it’s the car.

Sourced via motortrend.com

SA vehicle production expected to reach 7-year low in ’09

All sectors in the local automotive industry were continuing to experience “unprecedented viability challenges”, placing further pressure on the industry, which had already shed 2 566 jobs in 2008, the National Association of Automobile Manufacturers of South Africa (Naamsa) reported on Wednesday.

With the release of its quarterly business conditions review for the fourth quarter of 2008, Naamsa president Nico Vermeulen commented that domestic new vehicle sales and production would likely reach a seven-year low this year.

“2009 is expected to be an extremely difficult year for the entire South African automotive industry. The operating environment in all three sectors of the industry, during the first few months of 2009, has continued to deteriorate substantially,” he said in a statement.

Lower interest rates and declining inflationary pressure would likely improve the financial position of many local consumers by the second half of the year, when a recovery was expected to start.

However, an improvement in the international automotive industry would likely only start in 2010, with exports from South Africa expected to stay under pressure until 2011.

Exports of new cars and light commercial vehicles for 2009 would be down about 36% in volume and value terms this year, Naamsa reported, adding that exports of medium- and heavy-commercial vehicles and buses to the rest of Africa would likely increase.

Total exports for 2008 amounted to 284 211 vehicles, with preliminary trade data showing that combined component and vehicle export revenues reached R93-billion.

New vehicle sales in the fourth quarter of 2008 had been down by 30,2% to 62 835 units, compared with 89 976 units sold in the fourth quarter of 2007.

A total of 723 jobs had been lost in the quarter, as two major employers in the sector reduced its head count. One employer had, however, increased its headcount in the quarter.

The aggregate new domestic vehicle sales would be down by 16% to under 450 000 units in 2009, compared with the 533 387 new vehicles sold in 2008.

Similarly, domestic production would fall by 16,5% year-on-year, said Naamsa, reporting that the net effect on production would lead to a loss of 26% to 415 500 units, down from the 562 965 units produced in the previous year.

Meanwhile, the industry was expected to spend about R3,7-billion in capital expenditure during the year, compared with R3,3-billion spent in 2008.

Sourced via engineeringnews.co.za

‘Booze cruise’ used NHS vehicle

Two ambulance managers used an NHS vehicle to go on a “booze cruise” to France, a disciplinary panel has heard.

Essex Ambulance staff Richard Lane and Paul Leaman had some seats taken out to fit in more alcohol, it was claimed.

The trust then had to foot the bill for the alterations in 2001, the Health Professions Council (HPC) was told.

The two former senior managers admit the facts of the charges but deny that their fitness to practise is impaired, the misconduct tribunal heard.

Representing the HPC, Vicky Lord said: “They were engaged in what appeared to be a vacation across to France to bring back quantities of alcohol into the country using a trust vehicle.”

‘Removed back seats’

Trust employee Paul Holmes noticed the bill and blew the whistle.

He said: “This vehicle had three rows of seats and, as there were only four people going, removing the back seats would have given them a lot more stowage for their alcohol.”

It is also claimed that Mr Lane and Mr Leaman colluded with a company called Alliance Trading and harassed other staff to use it as a supplier.

The financial allegations and booze cruise claims which were reported by Mr Holmes date back to 2001.

The HPC was told that he was then bullied by Mr Lane and Mr Leaman and subjected to a disproportionate disciplinary procedure in 2005.

‘Victimisation’

Transport manager Mr Holmes told the hearing he took Essex Ambulance Service to an employment tribunal over his treatment at the hands of Mr Leaman and Mr Lane.

Mr Leaman is now seconded to West Midlands Ambulance Service and Mr Lane no longer works for the trust.

Ms Lord said: “Mr Holmes was victimised by the registrants, which led to an incredibly stressful episode in his life.

“A hard-working, honest man, who sought to stick to the rules, in my submission, was harassed for what was honesty and integrity.”

Mr Leaman is accused of starting disproportionate disciplinary proceedings against Mr Holmes without an investigation, and Mr Lane of bullying Mr Holmes at an internal disciplinary panel meeting.

The hearing was adjourned until Wednesday.

Sourced via news.bbc.co.uk