11/14/03 - Superformance says a 2004 price increase is inevitable, as reported by Ronnie Kruger of Superformance International...   South African manufacturers and exporters of autos and auto components are having a trying time with the current strong local currency. Since January this year, the Rand/US Dollar exchange rate has strengthened from just over than R10 to the $ to an average of 6.6 these last two months. In essence, manufacturers who export to the USA receives a third fewer Rands for every dollar earned than in the beginning of the year.

Superformance has already announced  that the price of their Mk III will increase by about 10% from mid December (but the price of the newly launched Superformance will remain unchanged at this time) and parts prices will follow suit.

Although the 10% increase will not compensate for the loss of Rand earnings, Superformance is probably much less affected than most of the other manufacturers who export to the US.  Hi-Tech Automotive is a contractual manufacturer who views Superformance in the US as just one of their customers. Hi-Tech has a strong South African market (they sell the Superformance brand in South Africa) and build and supply all the Sascars (a Nascar type formula) that are raced in SA. They also have a large race car and sports car component market in South Africa, own part of a composite factory that is active in the aerospace and yacht building market, and own an alloy wheel factory, enabling them not to have all their eggs in the dollar basket..

Hi-Tech also produces the Noble M12 for Noble Moy in the UK, and exports the Superformance brand to Europe and the UK. The latter currencies have not shown the same movement as the dollar has, so Hi-Tech is able to spread its earnings amongst less volatile currencies, to the advantage of their wholly-owned US subsidiary .