You can view the page at http://mybroadband.co.za/vb/content.php/7581-BMW-had-enough-for-SA-s-labour-problems-analyst
-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: How do you normally pay for purchases in stores?
Article: BMW had enough of SA's labour problems: analyst
- Thread starter rpm
- Start date
Polymathic
Honorary Master
- Joined
- Mar 22, 2010
- Messages
- 33,669
- Reaction score
- 14,746
Eish the Germans must be well pissed with our workforce
LazyLion
King of de Jungle
Financial services group Nomura believes BMW's scrapping of expanded investment in the country shows it has had enough of labour issues.
"We hear of these things all the time from companies but they normally are not in the public eye and in the media because they are decisions made in quiet back rooms by management and not trumpeted," Nomura analyst Peter Attard Montalto said in a statement on Friday.
"However, BMW has clearly had enough of the labour situation and the risk/reward of further investment simply doesn't make sense for them."
French news agency Agence-France Presse reported on Thursday that the German car maker had lost an opportunity to compete for production of a new model because of ongoing strikes.
"The ongoing strike action affects the reputation of South Africa to be a reliable partner for export," local BMW spokesman Guy Kilfoil was quoted as saying.
Production had been slashed from 350 to 85 units a day he reportedly said.
A strike in the automotive industry by National Union of Metalworkers of SA (Numsa) members has entered its fourth week.
Numsa spokesman Castro Ngobese said workers wanted a double digit wage increase and changes to conditions of employment, such as the banning of labour brokers, establishment of a short-time workers' fund, and a transport allowance.
He said the strike would continue until a deal was agreed on.
On Friday, the Business Day newspaper featured an editorial on BMW and criticised President Jacob Zuma's economic policy approach.
"The president is a politician. BMW is a manufacturer. Only one of them knows what they are talking about," the editorial read.
Attard Montalto said investors were keeping a close eye on the country, not only in the car sector but with Eskom's delayed construction of power stations and labour struggles in the platinum and gold sectors too.
"There are many other companies thinking the same thing because of labour issues," he said.
Source : Sapa /je/jk/ks/jje
Date : 04 Oct 2013 13:52
"We hear of these things all the time from companies but they normally are not in the public eye and in the media because they are decisions made in quiet back rooms by management and not trumpeted," Nomura analyst Peter Attard Montalto said in a statement on Friday.
"However, BMW has clearly had enough of the labour situation and the risk/reward of further investment simply doesn't make sense for them."
French news agency Agence-France Presse reported on Thursday that the German car maker had lost an opportunity to compete for production of a new model because of ongoing strikes.
"The ongoing strike action affects the reputation of South Africa to be a reliable partner for export," local BMW spokesman Guy Kilfoil was quoted as saying.
Production had been slashed from 350 to 85 units a day he reportedly said.
A strike in the automotive industry by National Union of Metalworkers of SA (Numsa) members has entered its fourth week.
Numsa spokesman Castro Ngobese said workers wanted a double digit wage increase and changes to conditions of employment, such as the banning of labour brokers, establishment of a short-time workers' fund, and a transport allowance.
He said the strike would continue until a deal was agreed on.
On Friday, the Business Day newspaper featured an editorial on BMW and criticised President Jacob Zuma's economic policy approach.
"The president is a politician. BMW is a manufacturer. Only one of them knows what they are talking about," the editorial read.
Attard Montalto said investors were keeping a close eye on the country, not only in the car sector but with Eskom's delayed construction of power stations and labour struggles in the platinum and gold sectors too.
"There are many other companies thinking the same thing because of labour issues," he said.
Source : Sapa /je/jk/ks/jje
Date : 04 Oct 2013 13:52
Compton_effect
Honorary Master
- Joined
- Sep 7, 2006
- Messages
- 12,287
- Reaction score
- 1,102
In a year or two the plants will be owned by Chinese and operated by Chinese contractors...
ToxicBunny
Oi! Leave me out of this...
Fekking idiots..
We DEMAND x,y and z...
Company turns around and goes "Sorry, you're all unemployed, we're closing the factory. This is because you went on strike every year and we cannot manufacture cars in this country at a price point that makes sense anymore"
This happened in the UK to more than just the car industry and these bloody idiots who run the Unions can't see this coming?
We DEMAND x,y and z...
Company turns around and goes "Sorry, you're all unemployed, we're closing the factory. This is because you went on strike every year and we cannot manufacture cars in this country at a price point that makes sense anymore"
This happened in the UK to more than just the car industry and these bloody idiots who run the Unions can't see this coming?
lucifir
Expert Member
Can you really blame them??
The rest of the world is in crisis and people are glad for any jobs they have, while here they only demand more!!
I am sure we will see lots more companies doing the same
The rest of the world is in crisis and people are glad for any jobs they have, while here they only demand more!!
I am sure we will see lots more companies doing the same
Not only the price point. When you can't meet production goals, or even forecast them accurately, how on earth can you run a business? Not even SMEs operate like that...
The sad part is once all these idiots in the various sectors loose their jobs because there is no more work - the tax payers will be forced to carry them.
And then they'll continue to strike because they're not happy with the free services they're getting while contributing nothing... destroying the ****ty infrastructure we have left, and again, we'll be forced to pay to fix it.
And then they'll continue to strike because they're not happy with the free services they're getting while contributing nothing... destroying the ****ty infrastructure we have left, and again, we'll be forced to pay to fix it.
ToxicBunny
Oi! Leave me out of this...
Of course.. I was oversimplifying the whole thing... hell it won't even matter about price point really... it is ultimately about production goals, productivity and being able to forecast.. when those are impossible and you have options elsewhere, that even if they're 5% more expensive, will become more attractive purely from the ability to KNOW what is going to come out of the factory.
The_Unbeliever
Honorary Master
I demand a new South Africa without oxygen thieves and oinkers!
dlk001
Executive Member
This also means no more government Blue Lights BMWs on our roads...
Since when has paying more for the same been a prohibitive factor for this government?
dlk001
Executive Member
Fair point...I'm waiting for retaliation from Cosatu, SACP etc calling for boycot of BMW cars...
Last edited:
The problem is actually worse than it appears.
SA has a convoluted motor manufacturing policy that in effect subsidises jobs at the expense of the local consumer. Car prices are higher in SA than elsewhere.
A car made in SA and exported is often cheaper in the destination country, including transportation costs. The industry needs a reboot. BMW won't be here if it were not for the distorting subsidies.
Example:
USA Mercedes Benz for c200 Sport: $35,800
SA Mercedes Benz c200: R 483,000 (and this is probably not the direct comparable model, as it won't have all the 'extras').
It may work out cheaper for SA consumers if all the motor manufactures left and we imported all the cars.
SA has a convoluted motor manufacturing policy that in effect subsidises jobs at the expense of the local consumer. Car prices are higher in SA than elsewhere.
A car made in SA and exported is often cheaper in the destination country, including transportation costs. The industry needs a reboot. BMW won't be here if it were not for the distorting subsidies.
Example:
USA Mercedes Benz for c200 Sport: $35,800
SA Mercedes Benz c200: R 483,000 (and this is probably not the direct comparable model, as it won't have all the 'extras').
It may work out cheaper for SA consumers if all the motor manufactures left and we imported all the cars.
The problem is actually worse than it appears.
SA has a convoluted motor manufacturing policy that in effect subsidises jobs at the expense of the local consumer. Car prices are higher in SA than elsewhere.
A car made in SA and exported is often cheaper in the destination country, including transportation costs. The industry needs a reboot. BMW won't be here if it were not for the distorting subsidies.
Example:
USA Mercedes Benz for c200 Sport: $35,800
SA Mercedes Benz c200: R 483,000 (and this is probably not the direct comparable model, as it won't have all the 'extras').
It may work out cheaper for SA consumers if all the motor manufactures left and we imported all the cars.
SA has a convoluted motor manufacturing policy that in effect subsidises jobs at the expense of the local consumer. Car prices are higher in SA than elsewhere.
A car made in SA and exported is often cheaper in the destination country, including transportation costs. The industry needs a reboot. BMW won't be here if it were not for the distorting subsidies.
Example:
USA Mercedes Benz for c200 Sport: $35,800
SA Mercedes Benz c200: R 483,000 (and this is probably not the direct comparable model, as it won't have all the 'extras').
It may work out cheaper for SA consumers if all the motor manufactures left and we imported all the cars.
It's not. We don't get the Sport version in SA anymore. We have the Classic, Elegance, and Avantgarde. Sport is the top trim level.