Get more Mail & Guardian
Subscribe or Login

Naamsa: Strike in auto sector could affect investment

European and Asian vehicle manufacturers are considering whether to establish manufacturing operations in South Africa, the National Association of Automobile Manufacturers of South Africa said on Wednesday.

“The rising incidence of strike action in South Africa was likely to impact the ultimate decision whether or not to invest,” it said.

 

Manufacturers including Toyota, Volkswagen and General Motors, face a loss in production revenue of about R20-billion after 30 000 workers downed tools for 15 days after demanding higher wages. The industry faces further losses as the National Union of Metalworkers of South Africa leads a new strike of about 72 000 workers from fuel stations to car-component makers.

 

The automotive industry has lost about 45 000 units because of strikes, said Naamsa.

 

“These figures would rise further as a result of the current strike in the component-manufacturing industry,” said Naamsa.

 

“The Mercedes-Benz South Africa plant in East London already had to stop production at midday on Monday this week due to strike action at its suppliers.”

 

South Africa’s central bank forecasts the nation’s economy will grow 2% this year after expanding 2.58% in 2012, with labour unrest in mines shaving 0.3 percentage point off growth in 2013, President Jacob Zuma said in June. The rand is the worst-performing of 16 major currencies tracked by Bloomberg. Consumer prices accelerated to 6.3% in July, breaching the upper limit of the regulator’s target.

 

The country’s automotive industry accounts for 30% of South Africa’s manufacturing output, according to Naamsa president Johan Van Zyl.

 

Industry exports and local production forecasts would be revised downwards, the association said. – Bloomberg

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Family wants clarity on SANDF soldier killed in friendly fire...

Corporal Simanga Khuselo join the peacekeeping mission in the DRC to save money to build his family a home

SA soldiers have been fighting in a distant land for...

Troops were sent to the Democratic Republic of the Congo in 2001 as part of the UN peacekeeping mission that became an offensive against rebels

More top stories

Family wants clarity on SANDF soldier killed in friendly fire...

Corporal Simanga Khuselo join the peacekeeping mission in the DRC to save money to build his family a home

SA soldiers have been fighting in a distant land for...

Troops were sent to the Democratic Republic of the Congo in 2001 as part of the UN peacekeeping mission that became an offensive against rebels

UK red list will hit SA tourism hard

More than 430 000 British tourists visited South Africa in 2019 but this dropped by 97% last year because of Covid-19

Shoprite among firms that failed in Africa, Europe, Australia

Corporate South Africa is feeling the Covid-19 pinch. But is there space for growth domestically?
Advertising

press releases

Loading latest Press Releases…
×