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Cape Town - The manufacturing industry in South Africa had better start debating the issue of productivity more seriously if it wants to prevent losing out on more and more investments, Guy Kilfoil, spokesperson for BMW SA, told Fin24 on Monday.
"Productivity is the name of the game and SA has already lost out because of a lack of it to South America, Eastern Europe and the East, which are hugely competitive," said Kilfoil.
He added that BMW SA remains 100% committed to its existing manufacturing facility in South Africa and forsee no job losses.
"We are not disinvesting from South Africa. We are simply saying, though, that because of the labour instability in the country, we have lost out on the opportunity to present a case for manufacturing a new model locally," said Kilfoil.
He added that the current labour instability in the auto industry is different to what BMW SA has experienced over the past 40 years that it has had a presence in the country.
During two months of strikes in the auto industry BMW SA has lost out on the production of 13 000 units.
Because its manufacturing in SA is already at a maximimum level allowed by the current capacity, it is not possible to make up for the lost units.
If BMW SA could have won the opportunity to manufacture a new model, it would most likely have led to creating more jobs, according to Kiloil.
"Any expansion plans on our side are on hold now, but it is not off the table," he said.
"We have been very specific in saying only production investments are on hold. We are still investing - for instance in refurbishing our headquarters."
Kilfoil emphasised that BMW acknowledges the right to strike, but regards it as a right to be used responsibly and as a last resort.
It is important for the future of SA's auto industry to get to the point where strikes in all the different sub-sectors run at the same time, according to Kilfoil.
"BMW SA lost 13 000 cars in two months as first this sector and then that sector went on strike. If all the sectors had gone on strike at once, the impact would not have been that big," he said.
He said BMW SA's manufacturing might hopefully be up to speed again by Thursday.
The National Union of Metalworkers of SA (Numsa) said on Monday that it has reached a deal to end a four-week strike in the auto components sector. It cost the industry R20bn in lost output.
Even the SA Reserve Bank (Sarb) has been worried about the damage caused by labour unrest. South Africa's trade shortfall widened to R19.05bn in August, the biggest gap in seven months.
- Fin24
"Productivity is the name of the game and SA has already lost out because of a lack of it to South America, Eastern Europe and the East, which are hugely competitive," said Kilfoil.
He added that BMW SA remains 100% committed to its existing manufacturing facility in South Africa and forsee no job losses.
"We are not disinvesting from South Africa. We are simply saying, though, that because of the labour instability in the country, we have lost out on the opportunity to present a case for manufacturing a new model locally," said Kilfoil.
He added that the current labour instability in the auto industry is different to what BMW SA has experienced over the past 40 years that it has had a presence in the country.
During two months of strikes in the auto industry BMW SA has lost out on the production of 13 000 units.
Because its manufacturing in SA is already at a maximimum level allowed by the current capacity, it is not possible to make up for the lost units.
If BMW SA could have won the opportunity to manufacture a new model, it would most likely have led to creating more jobs, according to Kiloil.
"Any expansion plans on our side are on hold now, but it is not off the table," he said.
"We have been very specific in saying only production investments are on hold. We are still investing - for instance in refurbishing our headquarters."
Kilfoil emphasised that BMW acknowledges the right to strike, but regards it as a right to be used responsibly and as a last resort.
It is important for the future of SA's auto industry to get to the point where strikes in all the different sub-sectors run at the same time, according to Kilfoil.
"BMW SA lost 13 000 cars in two months as first this sector and then that sector went on strike. If all the sectors had gone on strike at once, the impact would not have been that big," he said.
He said BMW SA's manufacturing might hopefully be up to speed again by Thursday.
The National Union of Metalworkers of SA (Numsa) said on Monday that it has reached a deal to end a four-week strike in the auto components sector. It cost the industry R20bn in lost output.
Even the SA Reserve Bank (Sarb) has been worried about the damage caused by labour unrest. South Africa's trade shortfall widened to R19.05bn in August, the biggest gap in seven months.
- Fin24
