The recent unrest in KwaZulu-Natal and parts of Gauteng, as well as the subsequent cyberattack on Transnet that caused major disruptions to South Africa’s port operations, cost BMW Group South Africa (BMW SA) an estimated R200-million in lost vehicle sales, says corporate communications and governmental affairs head Deena Govender.
He says BMW SA lost two shifts’ production at its Rosslyn plant, in Tshwane.
“However, we have been able to catch up and recover these loses through overtime.”
The Rosslyn plant produces the X3 for the local and export markets, and uses the Durban harbour, in KwaZulu-Natal, for import and export purposes.
In terms of vehicle movement to and from KwaZulu-Natal, a number of vehicles, not quantified by BMW SA, were burnt in the civil unrest, and could not be shipped to customers in time.
“We are still in the process of replacing these orders,” says Govender.
“Although things seem to have calmed down and businesses are slowly reopening, our priority remains to protect the safety of all BMW SA associates and assets in the areas affected by the unrest,” he adds.
“There is no denying from a production perspective there has been reputational damage to brand South Africa being seen as a reliable production location in the global production network.”
However, “with nearly 50 years in South Africa, the BMW Group remains fully committed to South Africa. We have invested billions of rand into plant infrastructure and job creation, and we’ll continue to do so,” notes Govender.
He adds that BMW SA has been engaging with government and industry bodies, such as Naamsa | The Automotive Business Council and Business Unity South Africa, to implement measures to stop similar events from happening in future and to bring the domestic economy back on track.