Audio By Carbonatix
U.S. carmaker Ford is hesitant about investing further in its South African operation because of repeated production stoppages caused by strikes, its regional chief said on Thursday.
The South African auto industry, which accounts for about 6 percent of the continent's most developed economy, has been hit directly and indirectly by four strikes in the past year.
"A challenge for us here in South Africa is convincing our board to continue to invest in a country where the stability of output is a little less certain than in other countries," Jeff Nemeth, president of Ford's South African business, told reporters.
Carmakers resumed production in September after a four-week strike by 220,000 metalworkers. Last year a strike by auto workers cost the industry $2 billion in lost output, followed by a strike in the auto parts sector and another by truck drivers who haul vehicles to ports and dealerships.
"Year after year after year, having that much of your output constrained by labor actions, you don't have a clear view of what your output might be," Nemeth said. "That will have an impact in our investment decisions."
Ford sells about 6,000 vehicles a month in South Africa, making it the third-largest supplier behind Toyota and Volkswagen. It also exports vehicles.
Latest Stories
-
Creative Canvas 2025: Documenting Ghana’s creative year beyond the noise
1 hour -
Alhassan Suhuyini makes Christmas donations to churches within Tamale North Constituency
5 hours -
Meet 81-year-old father of UCC Acting Vice-Chancellor, who recently graduated with an MBA
5 hours -
Did you know that Ken Ofori-Atta’s lawyer, Enayat Qasimi, is the ‘Ken Ofori-Atta of Afghanistan? – Kay Codjoe writes
5 hours -
Kidnap suspect arrested in Tamale as Police rescue victim after four days
5 hours -
Tema Oil Refinery resumes crude refining after years of shutdown
6 hours -
Kojo Antwi thrills fans with regal entry, marathon performance at ‘Antwified’ concert
6 hours -
Ofori Amponsah surprises KiDi at ‘Likor On The Beach’ 2025
6 hours -
Joy FM thanks sponsors, partners and patrons after spectacular 2025 Family Party-in-the-Park
6 hours -
‘Christmas babies’ and their mothers in Volta and Oti regions receive MTN hampers
7 hours -
One dead, another injured after accident at Atwedie
7 hours -
Maggi Waakye Summit draws thousands as Ghana’s biggest waakye festival returns
8 hours -
Western Regional Minister urges Ghanaians to use Christmas to deepen national cohesion  Â
9 hours -
Thousands turn Aburi Gardens into a festive paradise at Joy FM’s Party in the Park
9 hours -
Source of GOLDBOD’s trading funds questioned amid reported $214m loss
9 hours
