Buy custom The Impact Of Rising Oil Prices On The South African Economy In Relation To The Demand And Supply Of New Motor Vehicles
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1151 |
Essay's paper body
where new vehicles manufactured equal demand; local manufacturers have reduced vehicle assembly industry capacity levels to 67.7% in 2007. This has reduced supply and has been based on predicted sales targets for 2008.
FINDINGS
Bearing in mind the volatile financial market conditions, lower levels of consumer sentiment and dropping business confidence - the short term outlook for the domestic automotive industry remains negative...
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The delayed effect of interest rate increases, growing pressure on consumers as a result of sharp increases in inflation, especially energy and food, will reinforce the negative trend. Additionally, most importers and manufacturers have implemented price increases to partly recover the relentless and record cost increases in materials and automotive inputs and to compensate for the weakness in the exchange rate...
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