VW exec warns of possible Brexit effect on Uitenhage

VW SA executive, Thomas Schaefer.

South Africa’s manufacturing sector will have to pay careful attention to future job protection in the run-up to Brexit and its October 31 deadline, Volkswagen’s top executive for its local operations has said.

Speaking at an industry indaba in Sandton, VW SA MD and chair Thomas Schaefer stressed that 70% of the 160 000 cars that were manufactured annually were exported.

“Of that figure about 50 000 go to the UK.”

He said that the amount of cars destined for the UK market just from VW’s plant in Uitenhage, “requires an entire shift of about 2000 people.

“It’s worrying to think what might happen if Brexit disrupts that,” Schaefer said.

The remarks were made in the context of a generally agreed private sector desire for stepped-up involvement by government to ensure that the local automotive industry, which contributes 7% to South Africa’s GDP, is protected against threats such as Brexit.