Mercedes-Benz SA leading luxury vehicle maker

Unveiling its annual financial results for 2014, MBSA said it achieved the top spot in the premium luxury segment in South Africa with phenomenal growth in sales of 25.3%, according to sales figures for 2014 as reported to the department of trade and industry.

This was achieved in a declining year for the premium luxury segment with total market sales in this segment down 0.6%, MBSA said.

For the financial year under review, MBSA posted a 5% rise in revenue to R45.32bn. Costs incurred in 2014 resulted in earnings before interest and tax (EBIT) being lower than the 2013 financial year at R3.08bn compared to R3.54bn.

"We have achieved our goal of undisputed leadership through continuous sustained production excellence, outsold the competition in the premium luxury passenger car segment, consolidated our position as market leader in the commercial vehicles sector, all underpinned by positive and constructive labour relations with our employees," said Arno van der Merwe, CEO and executive director of MBSA.

MBSA started production in its East London plant of the new generation C-Class, which is exported to various international markets.

The vehicle manufacturer made a total investment of more than R5bn from 2011 to 2015, Van der Merwe said.

"Further costs were incurred in the specific training initiatives launched to equip the staff of the plant for the new generation C-Class production and the technology requirements that come with it. More than 1 200 training interventions took place with a total investment in training costs specifically for the C-Class of more than R68m," Van der Merwe said.

Source: INET BFA