The local motor industry could dip into a R6bn black empowerment fund to support local components suppliers and other vulnerable car companies that might otherwise go out of business during the Covid-19 crisis.
However, industry officials say the money may be needed to support existing small, vulnerable companies at risk in the next few months. The industry is trying to assess the long-term impact of the shutdown — not just on the estimated 120,000 workers directly involved in vehicles and components manufacture but also on the hundreds of thousands of jobs in other sectors that supply the industry.
Some components companies could be offered a thin lifeline if the government accedes to a request by the Retail Motor Industry Organisation to declare retailers of tyres, spare parts and accessories, as well as repair shops, as essential services. At the moment, they will all have to close on Thursday. However, CEO Jakkie Olivier said they are needed to keep emergency vehicles such as ambulances, fire engines and police cars on the road during the lockdown.
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