South Africa has been urged to move quickly to protect and strengthen its automotive manufacturing sector as uncertainty around Volkswagen’s global operations highlights the growing pressure facing carmakers worldwide.
The call follows reports that Volkswagen is examining major restructuring options that could affect tens of thousands of jobs across its international business. Although no formal announcement has been made regarding Volkswagen South Africa, Sonja Boshoff, Chairperson of Parliament’s Select Committee on Economic Development and Trade, says the situation should not be ignored.
Sonja says the developments show that South Africa can no longer assume that long-standing automotive investment will remain secure without a stronger competitive offering. Global manufacturers are reviewing production locations, future model allocations and investment plans as they respond to rising costs, slower demand in some markets, tighter margins on electric vehicles and intensifying competition.
Volkswagen’s challenges are being felt most sharply in Germany, where political leaders, unions and the company are under pressure to find ways of protecting jobs and keeping factories busy. Olaf Lies, the premier of Lower Saxony, has reportedly suggested that Volkswagen should consider building in Germany some models that are currently linked to China, arguing that this could help safeguard employment and support local innovation.
The wider industry is also being reshaped by the rapid rise of Chinese manufacturers. Companies including BYD, Geely, Chery and SAIC have expanded their influence in both China and Europe, forcing established vehicle groups to rethink pricing, production costs and long-term investment decisions.
For South Africa, she says the message is that automotive investment must be actively retained and expanded. The sector plays a major role in the economy, supporting jobs not only in vehicle assembly but also in components, logistics, retail, services and small businesses connected to the motor industry.
Sonja says South Africa needs faster and more practical reforms to improve confidence among investors. These include a more reliable electricity supply, efficient ports and rail networks, clearer policy direction, reduced regulatory obstacles and quicker implementation of programmes designed to support industrial growth.
Electric vehicles (EVs) have introduced a whole new vocabulary into motoring. Instead of simply talking about litres of fuel, cylinders and kilometres per tank, motorists are now confronted with kW, kWh, AC, DC, WLTP, regenerative braking and a host of other terms.
Young South African motorists are increasingly opting for more affordable and practical vehicles as the cost of living puts pressure on household budgets, while still maintaining comprehensive insurance cover.
The row over BMW’s Spider-Man promotion is not really about superheroes. It is about trust, control and the creeping feeling that modern cars are becoming digital platforms first and private possessions second.
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Cars are the ultimate symbol of freedom, independence and individualism. They offer the freedom to ‘go anywhere,’ whenever it suits and with whom one chooses.
Sarah Redshaw
Young South African motorists are increasingly opting for more affordable and practical vehicles as the cost of living puts pressure on household budgets, while still maintaining comprehensive insurance cover.
The row over BMW’s Spider-Man promotion is not really about superheroes. It is about trust, control and the creeping feeling that modern cars are becoming digital platforms first and private possessions second.
With forecasts of snow, icy rain and stormy weather across the country, motorists are urged to drive carefully and adapt their driving style to suit the conditions.
