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
-
Two bodies stuck at St. Anne’s mortuary after refrigeration engines break down
22 minutes -
‘We will not let this matter rest’ – Afenyo-Markin after Bagbin rejects narcotics probe
26 minutes -
AFCON 2027Q: Ghana suffer 4-2 defeat to Gambia
30 minutes -
Your strike could disrupt academic calendar – GES urges teachers to return
37 minutes -
Speaker’s ruling has failed integrity test required of Parliament to discharge its duties – Afenyo-Markin
1 hour -
St. John’s Grammar edges Mfantsipim in nail-biting NIQ showdown
1 hour -
Expanding Financial Inclusion: Advans Ghana’s client base more than doubles to 160,000
1 hour -
AFCON 2027Q: Ghana surrender two-goal lead to lose to Gambia
1 hour -
Daily Insight for CEOs: Preparing the organisation for 2027
1 hour -
‘Don’t just sit silent and expect a referral’ – Speaker urges Human Rights Committee to investigate abuses
2 hours -
‘Give caucus leaders adequate time to speak before ruling’ – Afenyo-Markin to Bagbin
2 hours -
Petrosol gives back to society by donating 3,600 books and bags to Sawla DA Primary
2 hours -
Bagbin dismisses Minority motion on narcotics seizures as inadmissible
2 hours -
From Oversight to Impact: Why board committees will make or break Africa’s organisations
2 hours -
‘Strong criticism is legitimate but insult is not argument’ – Speaker urges restraint in public discourse
2 hours