South Africa shaping up to save auto industry

A team led by the South African Department of Trade and Industry is working on a plan to rescue the countryÔÇÖs automotive industry. The team, which includes industry and labour representatives, was set up as part of a South African response to the global economic crisis, thrashed out in the National Economic Development and Labour Council (Nedlac).  Details of the plan are not expected to be published until the end of the month, but it is expected to include bridging finance for car manufacturers, adjustments and/or scrapping allowances to stimulate demand for cars, and funds for on-the-job training for laid-off workers. The net employment loss in the car assembly segment so far is 9500. More jobs were on the line, said Herman Ntlatleng, sector co-ordinator for the National Union of Metalworkers of SA. Component manufactures are also suffering. Roger Pitout, director of the National Association of Automotive Component and Allied Manufacturers, told an industry workshop on Friday that component production was down 35 percent from last year and 8000 jobs had been lost in the components sector. Treasury spokesman Thoraya Pandy said yesterday the Treasury could not comment on the proposal about tax adjustments to stimulate demand, as the task team's work was led by trade and industry. The Treasury would, however, consider the recommendations once the plan was tabled. *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *