Mercedes-Benz drives to record

MERCEDES-Benz SA (MBSA) had record revenue of R45.32bn in 2014, in what CEO Arno van der Merwe described yesterday as a “transitional” year.

The R5bn investment in the East London assembly plant reached fruition with the launch of a new C-Class car last year, while the truck and financial services divisions also reported strong growth.

Mr van der Merwe said MBSA’s German parent, Daimler, was looking “with interest” at Nigeria as a potential second African manufacturing base. Though he said there had been no direct talks and there were no immediate plans for any, Daimler was one of many global motor companies eyeing the country.

Mr van der Merwe said a 25% increase in South African sales of its new cars helped MBSA achieve “undisputed leadership” of the local premium luxury car segment in 2014.

Demand for Mercedes-AMG high-performance models grew 63% to more than 1,600, making SA one of the world’s biggest markets for the AMG brand.

MBSA sold 28,370 cars in SA last year.

Mr van der Merwe predicted a “subdued” year for the new-car market in SA as a whole, with sales close to those of 2014.

The company’s sales are unclear, following its decision late last year to withhold detailed figures. It now gives aggregate numbers for cars and commercial vehicles, with no model breakdown.

Most East London C-Class production is for export and Mr van der Merwe said demand was so strong that the plant now operated a permanent three-shift system, working around the clock five days a week.

Apart from the C-Class, all Mercedes cars sold in SA are imported, along with some commercial vehicles.

Mr van der Merwe said MBSA’s success extended beyond cars. The company was the clear market leader in the truck market and the group’s financial services division was growing aggressively at a time when other financial institutions were adopting a cautious attitude to new business.

Marketers said 40% of new MBSA cars and 50% of new trucks were financed by the group.