The Minister of Electricity, Dr Kgosientsho Ramokgopa says saving jobs and electricity in the automotive sector is vital for its long-term sustainability.
He was in the Nelson Mandela Bay Metro, visiting vehicle manufacturers as part of his continuous engagement with the automotive industry on the challenges caused by the current electricity crisis and possible short to medium term solutions.
The Minister in the Presidency responsible for Electricity, Dr Kgosientsho Ramokgopa, is continuing with his visit to original equipment manufacturers in the Eastern Cape at the VW and Isuzu plants in Gqeberha. #sabcnews pic.twitter.com/cthWOEnyRW
— Lerato Fekisi (@LThipa) May 5, 2023
The automotive industry contributes more than 6 % of the country’s Gross Domestic Product.
Ramokgopa is concerned about job losses.
“It (rolling blackouts) also has implications on workers. They are losing their weekly wages up to 20% as a result of stop (and) start. What VW has done is installing PV (photovoltaics), making sure that they go very aggressively in the rollout of a digital PV, identified sites on the plant, the car park will be converted PV and they are making investment of about R70 million. They are also working on circles; they are closed on some days so that they are able to maximize production.”
Volkswagen South Africa Managing Director, Martina Biene says avoiding production losses and market share in the competitive global environment is key.
“With stage five (of rolling blackouts), we close 1 out of 8 days and with stage six, we close 2 out of 8 days, like a rolling schedule. We lose approximately 710 cars a day and send people home and (we) can’t pay them if we can’t produce. Currently, this has resulted in a loss of 4000 units so far this year and if this carries on, we will lose up to 33 000 vehicles a year which puts us in a dire situation in terms of being competitive.”
