As the world continues to try to minimise the economic ramifications of the novel Coronavirus (Covid-19) outbreak, German car manufacturing giant BMW announced on Wednesday that it was temporarily shutting down its Rosslyn manufacturing plant in Pretoria, which is set to affect over 2 000 employees.
Norman Lamprecht, executive manager of the National Association of Automobile Manufacturers of South Africa (Naamsa), told FTW on Thursday that the decision by BMW to temporarily suspend operations was in the best interests of their employees and the public as the country tries to contain the spread of the virus.
“The company’s actions reflect those of a good corporate citizen to protect its employees as well as to support society in its fight against the virus, aligned with the actions of many other companies,” said Lamprecht.
He added, however, that with a plant closure there typically would be a loss in production over the specific period, which added to the woes of the already struggling local automobile manufacturing.
“Demand is affected all around the world while the domestic new vehicle market has continued its six year decline into 2020,” he said.
“Domestic new vehicle sales as well as exports have declined during the first two months of the year and this trend is expected to continue due to the continued weak macro-economic climate in South Africa as well as until the impact of the coronavirus comes under control.”
The ongoing worldwide travel bans and restrictions had placed an extra burden on the industry, with most of the world under lockdown and unable to trade, he added. – Bjorn Vorster
