The nation wide strike in South Africa impacts more automakers image

Besides the Toyota plant we reported earlier, the nation wide strike has started to affect other manufacturers, like Volkswagen, GM, BMW, Nissan and Ford, with production halted or seriously impaired.

South Africa’s auto manufacturing industry came to a near standstill on Monday when about 30,000 workers downed tools and this stoppage would cost the industry about 600 to 700 million rand ($60 million) a day in lost production, by reducing output by 3,000 vehicles, according to the National Association Automobile Manufacturers of South Africa (NAAMSA).

“The strike affects the entire value chain of the industry,” NAAMSA director Nico Vermeulen said.

“The strike started today,” Castro Ngobese, a spokesman for the National Union of Metalworkers of South Africa, said. “There are no negotiations, since they broke down. We are waiting for employers to submit a revised offer.”

The union is demanding a 14% annual wage increase alongside improved medical benefits and shift flexibility, according to Numsa National Treasurer Mphumzi Maqungo. The automotive industry receives subsidies of about 18 billion rand ($1.8 billion) a year from the South African government, according to National Treasury data. Not a small amount by all means, but unfortunately they have got one of the most radical unions in the world industry.

Exports of South Africa-made vehicles increased 18% to 147,616 units for the first six months of 2013, according to data from Naamsa. Shipping of vehicles is forecast to reach 337,000 units this year, compared to277,893 in 2012. Still, the strikes could compromise all the data if productions stops long enough.

Via Bloomberg, Reuters