South Africa's car manufacturing sector has been crippled for several weeks by a strike first among factory workers and then by parts manufacturers.
"Unfortunately due to labour instability we've lost the opportunity to compete for a new model that BMW in Germany wanted to manufacture here," BMW South Africa spokesman Guy Kilfoil told AFP.
"BMW in Munich must still decide where to allocate the production but it will be in some other part of the world," said Kilfoil.
"There's always a healthy competition between plants around the world to see who could produce it most cost-effectively," Kilfoil said.
"The ongoing strike action affects the reputation of South Africa to be a reliable partner for export," he added.
BMW SA's assembly plant in Rosslyn, north of Pretoria is meant to run 24 hours a day but the ongoing nationwide strikes have slashed production from 350 vehicles a day to ust 85 units, the company says.
BMW's statement from Munich comes a day after the International Monetary Fund warned that strident trade unions pose a risk to South Africa's already moribund economy where the country is struggling to increase growth and lags well behind most emerging markets. T unemployment is officially above 25%.
The current manufacturers' strike has affected seven major car manufacturers including Volkswagen, Ford, Mercedes, Toyota and General Motors in a sector that contributes six percent to the economy.
The Retail Motor Industry Organisation said the strikes reduced vehicle exports by 75% last month.
Source: AFP via I-Net Bridge
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