Auto industry strikes affecting the car production

Since Monday the top leading manufacturers, Volkswagen, Ford, Mercedes and Toyota are been reported either stopping or limiting their production. General Motors has not produced not produced since last week.

The executive director of National Association of Automotive Component and Allied Manufacturers (Naacam) Robert Houdet said “There is a loss of billions of rands in the component and the original equipment manufacturer sector, but the biggest damage is losing the investors confidence”.

Due to the three week long strike in august by the automobile workers, there was 50,000 cars in lost production in the industry, but as soon as it ended around 70,000 fuel servants and component producers decided not to work further any more.

Volkswagen spokesman Matt Gennrich told AFP that the company will keep its plant in small town Uitenhage closed until further notice.

He added further that “The hourly paid employees on our production lines will not be earning any income.”

According to spokeswoman Denise van Huyssteen of General Motors -GM have not been producing vehicles since last week.

Alisea Chetty- the Ford spokeswoman reported that “No ongoing production at the plant of the company's situated at Port Elizabeth and Pretoria" for two days, but may restart on Wednesday.

The communications manager Lynette Skriker Mercedes Benz also had limited its production on its commercial vehicle lines.

Toyota SA spokesman also reported that the local manufacturing from their side has stopped, but the assembly lines were operational.

Car manufacturers are expecting positive results from the new wage talks Wednesday.

However the NUMSA general secretary Irvin Jim told AFP that “The workers have rejected the offer of 8% increase the first year and 7% increase annually the next two years, instead they are demanding double the offered amount.”

The strikes in the mining and construction sector also followed stoppages as the unions are making increased basic demands.

Association of Mineworkers and Construction Union (AMCU) has launched a massive membership drive in auto sector.

Africa’s biggest economy is contributed by car manufacturers by around 6%.

But producers are warned against the ongoing stoppages. Naacam’s Houdt said that “Investors will think deeply before doing business with South Africa because of the labour instability.”