Over 4000 jobs lost in South Africa’s automotive sector

The African Transformation Movement (ATM) has called on the Minister of Trade, Industry, and Competition, Honourable Parks Tau, to act urgently as South Africa’s automotive sector faces severe job losses and plant closures. In a letter sent to Minister Tau, ATM Parliamentary Leader Vuyo Zungula on Monday said the sector has lost over 4,000 jobs in the past two years, with 12 companies closing their operations.

Zungula highlighted that Mercedes-Benz South Africa is on the verge of shutting its East London plant, a move that could leave the city with significant economic consequences. Ford has also reduced nearly 500 jobs at its Silverton and Struandale plants, while Goodyear has exited South Africa after 78 years of operations.

The letter described the situation as a national crisis, affecting thousands of workers and threatening the stability of communities that rely on the automotive industry. Zungula requested the government provide clear plans on how it will respond, including retraining programs, emergency financial support for affected workers, or incentives to retain manufacturing operations.

The ATM also raised concerns about the broader economic impact, noting that closures in manufacturing ripple through dealerships, logistics, maintenance, recycling, cleaning, and export sectors, putting further jobs and livelihoods at risk.

“The recent wave of plant closures, production halts, and mass layoffs by major manufacturers is nothing short of a national crisis, threatening the livelihoods of thousands and the economic stability of entire communities,” Zungula wrote.

The letter also addressed the growing share of imported Asian vehicles, particularly from China, which now hold 11.8 percent of the market. Zungula said the influx of imports is undermining local production and urged the government to ensure that foreign investment is linked to establishing local manufacturing plants rather than solely increasing imports.

The ATM leader questioned whether the promises of Chinese automakers opening plants in South Africa would provide meaningful opportunities for local workers, warning that foreign companies may rely primarily on their own staff. Zungula called on government authorities to enforce mandatory local manufacturing commitments and ensure that these investments support South African jobs.

“Your department’s courtship of these firms must translate into mandatory local manufacturing commitments, not just more imports that undercut South African workers,” Zungula said in the letter.

Zungula emphasised that decisive action is required to prevent the automotive sector from declining further, which could worsen unemployment and inequality in South Africa. He warned that inaction would allow the crisis to deepen and devastate the livelihoods of workers and their families in Pretoria, Gqeberha, and East London.

At the time of publication, Minister Tau had not commented on the letter or the issues raised by the ATM.