Automakers might have to scout for new “cheap labour” locations after South African auto workers joined their counterparts in China by launching a strike demanding for higher pay. Toyota, Nissan, GM and BMW were among carmakers affected by the strikes.
Luxury brand BMW closed its Rosslyn factory outside Pretoria, losing production of about 250 cars a day, company spokesman Guy Kilfoil revealed. At the same town, Nissan’s shut plant is losing 220 vehicles a day. Over at Port Elizabeth, GM stopped its assembly lines. Toyota, the world’s top automaker, halted output at its Durban plant, which produces the Corolla, Hiace, Fortuner and Hilux, losing 520 units a day.
As a whole, South African car factories will lose production of more than 2,100 vehicles a day because of a the strike, the Automobile Manufacturers Employers Organization (AMEO) said. About half of that output is destined for export markets. South Africa’s car and car-part makers are the biggest manufacturing exporters in the country, accounting for about 6% of the nation’s gross domestic product.
Carmakers have offered a 7% pay rise in a three-year agreement. The National Union of Metalworkers of South Africa wants a one-year agreement and increases in bonuses and sick-leave pay. NUMSA estimates that 31,000 workers participated in the open-ended strike.
Union demands are “unrealistic and do not take into account the highly competitive nature of the global auto industry, as well as our relative lack of competitiveness when comparing our costs to auto manufacturers in other countries,” AMEO was quoted as saying.
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Is a nightmare to the car manufacturer
where will they shift their production?
UMW malaysia maybe?
it’s time for the automakers to have an eye at malaysia…better if they close all the production hubs in china and focus on other places,,it is also the time for our goverment to think on their brains for a good deal by restructuring our useless automotive policy…we like to thank our goverment for the high taxes… as china products are getting useless day per day…their tremendous low quality products causues a lot trouble and bigger losses to the people,who earned their money by hard work….think
true, at least ‘Made In Malaysia’ means quality is guaranteed( for most of the products..lol)..
If i have a ‘Made In China’ product on my left and a ‘Made in Malaysia’ product on my right..i’ll definitely choose the locally made one..haha
The price might cause most of the people choose the China counterparts as locally made products, especially with the three color logo, are exorbitantly pricely.
Especially when the China goods are printed with “Japanese nanotechnology”.
Malaysia Boleh!
The statement only true for certain cheap product only. But for the high class like Apple, Nokia, BMW and others. I don’t think they will compromise their quality in exchange for cheap labour? One example of it was the VW not join venture with proton because proton is using cheap and inferior spare part producer (that is why proton got so many problems). With this, we can see the the Malaysia government is more concerned with the ‘muka’ rather than the economy aspect. This give us the perception that even the proton lost a lot in future, the government will do whatever they can the save them.
The workers over the world are getting for educative partly through internet. They know their right. At least in short term, I don’t think they will come to Malaysia because of so many rules and regulations imposed as well as the number of the ‘napolean’ in the government sector. They have to give ‘free’ food to somebody who is not working as well (u know what I mean).
perodua got so less problem?
In case of VW and Proton not join together, how can you so convince that is purely due to the part supply? Please dont make up story.
As for your information, cheap labour for BMW exist in Malaysia… It is in PEKAN, PAHANG…
I didn’t make up story. This issue has been debated (Title:The Political Economy of Automotive Industrialization in Malaysia and Thailand) in IKMAS in UKM with 2 professors from overseas universities. Perhaps you should read more articles.
It wasn’t presented as a facts as you presented. Perhaps you should revisit the event.
And BMW is currently SKD’ed in Kulim and not Pekan. Merc is SKD’ed in Pekan.
Feisal…..if your facts is correct then I should convey your message to the reporter and the editor that they have made the wrong report. OK? Or perhap you should enlighten us what has been discussed in the event.
i’m not so sure about your statement. china goods are improving day by day. They are a country with no natural resource but large labour force. People stated the same comment as you in the 1950’s about Japan and the 1980’s and even in the past decade about Korea. Today, Korea is a member of the OECD and their capital, seoul is the World Design Capital of the year. Also, imitation is the first step to innovation.
I agree, chinese products are becoming better.
On the other hand, China products will become a lot more expensive in a few years from now, as the chinese workers demand a higher pay too.
This is quite good for Malaysia, as the field of competition will be levelled and chinese workers will have the money to buy malaysian products… ;)
Other Right hand drive countries with relatively cheap labour is Thailand, Indonesia and Malaysia. The other major RHD country is India.
With Peugeot looking to use Malaysia as its main RHD hub, maybe others are looking to move to SEA. GM already has a large factorys in Thailand and India, any moves into malaysia i think will be mainly to serve malaysian market.
Thailand, China and India are LCC (Leading Competitive Country) not just cheap labour.
Yes. I double hands up for the continental car maker (peugeot) to come to the malaysia. This will benefit the customers. As we all know the japanese cars (H/T) are overpriced. This will create a healthy competitive environment (only with non-proton car maker) as competition with proton is not a healthy competition at all.
I agree to a certain extend of your statement…
But i can’t agree to your ” Japanese cars (H/T) are overpriced”..
Please note that DEALERS play an important role in the delivering and the pricing of these cars locally…. Please do not blame ( H/T) for the poor pricing becos in our country, there’s lots of rules and regulations( taxes,etc)…
Overpriced in terms of the add-on things compare to other cars. See the functions available for example in the same price range…..continental car offers more features and quality compare to H/T. The disadvantage of the continental car is they don’t have higher 2nd hand value. 3008 can offer up to 6 air-bags with automatic 6 speed at 140k and you will impress when you drive it compare to CRV (just my opinion and you can deny it). Please browse more users feedback from the malaysia car blog. You will see the result. I’m not blaming the poor pricing but just comparing non-proton car producer competition in malaysia ground. In fact, I prefer to see more car come out from other car maker like newly launch suzuki alto and hyundai i10 which give competition to the perodua cars. We Malaysian should get a better car with our hard earned money.
Guy sorry for hijack this..i heard that drb have sign with das auto…so what model will be ckd at pekan….
The most concrete step to cushion yourselves against worker strikes – Roll out better manufacturing robots and keep human labor to a minimum! Not only will vehicles be built with better tolerances and more consistent assembly, the production line will also be more efficient! Don’t be like Malaysia’s auto manufacturers – they have robots but they either underutilize or do not use them, just for the sake of generating unnecessary jobs for the locals and end up reducing the production capacity and quality.
How you know? R u the person that Proton fired recently?
this means that you are not really a manufacturing guy…
more robots mean more maintenance,
more maintenance mean more money,
more money means higher operating cost
higher cost will increase the selling price
Then why proton built Tanjung Malim factory? Seem like it was unwise desicion to make?
sounds like u r not an engineer either
Yes……then you should ask why proton engineers / management built the Tanjung Malim factory. I just curious…
A robot will replace 10 unskilled workers with 3 highly qualified technicians.
It’s a myth, that robots will reduce human labour. They reduce unskilled human labour… ;)
http://www.utusan.com.my/utusan/info.asp?y=2010&dt=0814&pub=Utusan_Malaysia&sec=Ekonomi&pg=ek_01.htm
Paul…
Care to share any insight on this… Merger or Proton & Perodua..
Sorry.. A bit off topic…
Proton and Perodua will not merge maybe for now…
Talking about the future???/Like 10 years later….Who knows?
Maybe it will end up like Hyundai-kia?
Hyundai-Kia case was not a merger. Kia was almost bankrupt in late 90s and Hyundai rescued it by swallowing it as part of the group albeit with different entity. Just like what VW is doing with Audi, Seat & Skoda.
and just what Proton & Perodua should do so.
back to topic – the people in China can smile now. They are not the alone in labour strike. But IMO the Koreans are still the champ in union workers strike! they are able to cripple korea as industrial nation.
VW signed MoU with DRB Hicom… hmm cheaper Golf in the future?
these manufacturer should come to Malaysia instead. Of course the wage is slightly higher but GUARANTEED no strike!
ISA maa…hahaha
Sori, off topic. VW finally MoU with DRC-Hicaom to CKD at Pekan… http://bit.ly/aMG5KU
i think its more to PM requests….. to more develop his hometown. so when he is not in service anymore he wil be remembered for those things.
Pekan is no different than Tampin, or Serendah in terms of development, except it has automotive manufacturing facilities but still its not moving Pekan and its people towards good wealth. they just have jobs – thats all.
Pekan is already an auto assembly town way before Tg Malim, Kulim or Serendah.
if not our country car policy, major car manufacturers will come to our country. period.
but, they still come isnt it?
They came, lose money, and left.
which car maker has left malaysia since they come?
Good to have UNION representing workers looking after their livelihood.
ppl only know M’sia factories got MTUC and banks employee has NUBE.
What about auto industry?
August 15th is 65th the anniversary of the end of World War II
Japan not aggressor but a victim of war.
why ppl keep looking it is Malaysia govt that at fault in this automotive policy?
it is statred that, if they want to get much more tax reduction for their car…
they should invest more… in RnD, vendor development, manufacturing, local employment…
some manufacturer is only setup a manufacturing plant… but no vendor development, no RnD… what is the benefit to the country?
less they invest, less they got tax reduction… it is just like that…
some of readers here keep defending the foreign brand without even knowing those item above…
Give another 10 years…..the market force with tell you who is the winner and who will be eliminated.
owh… a fortune teller…
Did I do forecast? Who is the winner? Who is eliminated?
This is a statement / opinion not forecasting
The benefit of investing in Malaysia is that we have all the foreign cheap labors, even the locals have to compete with them. So, because of the fact that they speak different language and cooking rice in different ways, it is not so easy to unite everybody and organize a grand strike demanding for more.
And as a result, if the local workers unite and demanding for more pay, or even some very basic human rights like go back home on time, alas, the bosses say, we will get bunglars lor.
Like the recent event, the labor department is receiving complaints from employers asking to let market decide the minimum pay for workers, and hence no decision has been made to enforce any sort of minimum pay yet. In the other word, let teh evil bosses continue to milk us.
The irony of our labor law is that not only it is barely protecting the employees in this country (I have to print the EPF website to one of my previous employer to prove that its a law to give EPF for every workers), its employees are being threaten with employment act by employers (remember those 3 months+ notice period in your offer letter? If you left now then we sue you, so have to continue milking process).
we also protect foreign thieves..,they all come here,,african,indonesian, arab people….this is dream land…better then america
Another off topic…
A friend of a friend of mine drive down south with a white Lancer Hatchback over last weekend, probably for a test drive.
Does that mean we will get that version of lancer soon. I snoop around & some one did say that it will be introduced in November…
Have you heard about this..?