BMW, GM, Toyota and other carmakers lose 2,100 vehicles in South African strike

Article by Christian A., on August 25, 2010

A strike in South Africa that started on Wednesday will lead to the production loss of over 2,100 vehicles a day, according to a statement from the Automobile Manufacturers Employers Organization. The affected automakers include BMW AG, General Motors Co., Toyota Motor Corp., among others.

It's estimated that about half of this output is intended for export markets. Toyota and BMW shut down their plants in South Africa after workers, who demand a 15% pay increase, went on strike. In an e-mailed statement, GM said that it had halted its main assembly lines at the Port Elizabeth plant and that it has limited operations on Thursday.

The employers organization described the union demands to be unrealistic and fails to consider the highly competitive nature of the global auto industry, as well as its relative lack of competitiveness when costs are compare to carmakers in other countries.

South Africa's car and car-parts industry is the country's biggest manufacturing exporter and stands for about for about 6% of gross domestic product. Carmakers have made an offer to increase pay by 7% in a three-year wage agreement.

On the other hand, the National Union of Metalworkers of South Africa is demanding a one-year agreement and increases in bonuses and sick-leave pay. Employers said that the NUMSA demands have total cost implications that exceed 30%. The employers group stated that it continues to be open to engaging NUMSA on an urgent basis to ensure that a balanced agreement is achieved.

If you liked the article, share on:

Comments

Recommended

Is there anything more exciting than a spoiler? Well, for those who didn't know, there are those who have already seen the Mercedes-AMG Project One (in the flesh) way before...
by - April 25, 2017
Does the Honda Passport ring a bell to you? This was the first ever SUV that was sold by the Japanese automaker, but it was not that successful compared with...
by - April 25, 2017
Wagon buyers who prefer their vehicle to be luxurious, you will have an entirely brand new selection at the latter part of this year. Porsche will start rolling out 4...
by - April 25, 2017
McLaren rejects the idea of creating anything other than a sports car. That means that vehicles that would be ideal for families such as an SUV or a crossover are...
by - April 25, 2017
The new and improved Opel Grandland X is out, and this large SUV is something the European market did not know they would need. Now measuring at 14.7 feet (4.48...
by - April 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries