South African carmaker wants Eskom discounts to compete with Chinese
Isuzu South Africa wants Eskom to extend its electricity price relief to more industries, including steel producers, to lower input costs and support the vehicle manufacturing industry.
The carmaker, which operates a plant in Gqeberha in the Eastern Cape, said the steel industry must be positioned to produce and supply steel at low cost.
Did you hear now?
Isuzu wants Eskom discounts so they can compete with the Chinese. Ja, well, obviously. Everybody wants an Eskom discount, my darling. I also want one. Must I send them my prepaid meter number, or is this only for companies with boardrooms and a communications department?
Apparently electricity is too expensive, steel is too expensive, manufacturing is too expensive, and everything is making it difficult for local carmakers to compete.
Ag, shame.
I do understand that factories need support and jobs are important, absolutely. Nobody wants the plant to close and people to lose work. But you just know how this story normally goes.
First they get cheaper electricity. Then the steel producers must also get cheaper electricity. Then there is government support, tax relief, special agreements and a very serious meeting with bottled water on the table. Everybody nods and says this will help the consumer.
Then the new bakkie arrives at the dealership and it still costs R900,000.
And the salesman stands there with his little tablet saying, “It is actually very good value.”
Value for who, Kevin? Because I am looking at the monthly instalment and it appears I must choose between the bakkie and feeding my family.
Meanwhile, China is not playing around. They are bringing in cheaper vehicles with giant screens, cameras, sensors, heated seats and technology that practically knows when you are in a bad mood. Here, we are still being told the floor mats are an optional extra, and the reverse camera only comes with the luxury package.
So yes, help local manufacturing. Keep the factories open, protect jobs and make steel cheaper to produce. That part is important. But please, man, if Eskom gives you a discount, the public must also see the benefit somewhere.
Do not take the cheaper electricity, keep the same vehicle prices, increase them again six months later, and then send out a press release about “challenging market conditions”. We know that trick already. We have seen this movie, and frankly, the ending is becoming predictable.
Lower the costs, lower the car prices. Otherwise it is not really industrial support for South Africans.
It is just corporate load-shedding relief with leather seats and a finance plan.
The government needs to step away and deregulate, not create new sacred cows.
