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 to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

Covid carbon drop hides mass pollution by only 100 corporations

While individuals are doing all sorts of things that would dramatically reduce their carbon footprints, it has little effect.

To fight Covid-19, we must fight intellectual property, trade and investment rules

These restrictions must be overturned or ignored because they are limiting the production and importing of essential medical equipment such as ventilators

Electric vehicles rescue GM plant

The Michigan assembly line faced closure as part of General Motors restructuring scheme, which would have cost jobs

Something out of the blue

With a bit of fine-tuning, this will be an excellent car

A quantum leap into luxury and comfort

Space was given away to accommodate more luxury – and it is luxurious

Toyota and VW lead in the ‘previously owned’ market

These two brands make up 39% of sales in new car volumes and 35% of used-car volumes, according to TransUnion
Advertising

New education policy on gender violence released

Universities and other higher education institutions have to develop ways of preventing or dealing with rape and other damaging behaviour

Cambridge Food Jozini: Pandemic or not, the price-gouging continues

The Competition Commission has fined Cambridge Food Jozini for hiking the price of its maize meal during April

Sekhukhune’s five-year battle for water back in court

The residents of five villages are calling for the district municipal manager to be arrested

Vaccine trial results due in December

If successful, it will then have to be manufactured and distributed
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday