DAVID FURLONGER: What load-shedding is doing to the motor industry

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Blackouts are a nightmare for the automotive sector, particularly companies with export connections.

The South African motor industry is bleeding money and jobs because of load-shedding. Nearly a quarter of South Africa’s components manufacturers have stopped hiring staff and a growing number are laying off employees. An estimated 15% have withdrawn from export orders because they can no longer guarantee to deliver on time.

Vehicle manufacturers, while shielded from the worst of lead-shedding by their investments in solar and other forms of alternative energy, are not immune. It needs only one components supplier to deliver late and the whole vehicle manufacturing chain can grind to a halt. That affects not just the vehicle manufacturer but also dozens of other components suppliers that have to adjust or suspend their own production...

 

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