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BMW Holds Off Investments in South Africa after Labor Strikes

Things are getting really serious in South Africa after almost two months of strikes and protests coming from labor syndicates. BMW alongside Toyota and Volkswagen had their factories closed for three weeks in August and September and now things are getting even worse.
BMW South Africa Head Office 1 photo
According to a BMW spokesman, Guy Kilfoil, the Bavarians decided to hold off further investments in the country for now, in light of recent developments. In a recent interview he might've even said a bit more than he should've.

“Any plans to expand our plant or our capacity further have been put indefinitely on hold. Future decisions are being made where South Africa would have been in the running. Based on the current environment we’re definitely not. You could say things have changed,” he said.

“From our perspective we think the country is at a fairly major socio-political crossroads. South Africa is becoming less globally competitive in terms of wages, energy costs, water costs. All of those things are making South Africa a less attractive destination for foreign investment,” he added.

The strikes have had a major impact on the country's exports that dropped about 75% according to the Pretoria-based National Association of Automobile Manufacturers of South Africa. Further impacts are expected alongside other manufacturers announcing similar measures.

Story via: Inautonews


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