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Auto industry loses R20bn over strike

Port Elizabeth - The crippling three week strike in the motor sector cost manufacturers 50 000 cars in lost production, said the National Association of Automobile Manufacturers of South Africa (Naamsa) on Tuesday.

Thousands of strikers returned to work after accepting a 11.5% wage increase, but on Monday employees at component manufacturers downed tools, which the industry says will again hurt production.

"They have to make up for the lost production of 50 000 vehicles," said Naamsa director Nico Vermeulen.

Throughout the manufacturing chain these losses may add up to R20bn, he added.

"Although the vehicle manufacturers strike has just ended, the industry still faces a tragic and worrying situation with the starting of the other (strike) in the components sector," he told a press conference in southern city Port Elizabeth.

"It maybe a question of days again before production grinds to a halt due to lack of components."

Component builders, mechanics and petrol attendants that are members of the National Union of Metalworkers of South Africa (Numsa) have been striking since Monday demanding "double-digit" raises.

The union represents around 70 000 labourers - around a third of the industry's total.

Manufacturers said they only had component supplies for four days.

At General Motors SA operations restarted on Monday but had to be scaled down with the new strikes, spokesperson Denise van Huyssteen said.

Volkswagen South Africa would try to catch up the delays later this year, but "in some instances the lost production is lost forever," said spokesperson Matt Gennrich.

"We can only comment on the impact of the fuel and retail motor industry strike after a few days," he added.

Meanwhile Numsa has vowed to continue industrial action.

Car manufacturing contributes around 6% to the economy and accounts for roughly 12% of exports. Last year South Africa exported just under 280 000 cars.


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