Carmakers Brace For Continued Pressure

The South African automotive industry has suffered in the wake of the global economic crisis, with average production capacity usage reaching its lowest level ever in 2009. The sharp decline in capacity usage is a result of a drop in demand for new cars at home and abroad. That, in turn, has resulted in widespread job cuts and reduced output. While the worldwide economy is largely believed to have bottomed out, the recovery is expected to be slow.

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