Dear Editor
The escalating automotive jobs crisis in Buffalo City has reached a critical point while the ANC government continues to block urgent debate and decisive intervention. The ongoing United States tariff hike challenges have already resulted in job losses and production cuts that threaten the economic stability of thousands of families in the metro.
The impact on ordinary people is severe. More than 113,000 residents in Buffalo City are already unemployed, and almost half of households survive on a single social grant. Every retrenchment pushes another family closer to poverty, hunger and despair. Workers in the automotive sector now live with the daily fear that their jobs will be lost next.
The Democratic Alliance (DA) is deeply concerned that the ANC-led provincial government has refused to treat this crisis with the seriousness it demands. Instead of allowing a debate of public importance on the automotive crisis requested by the DA in July, the Eastern Cape Legislature continues to avoid accountability and delay action while livelihoods are destroyed.
The facts are clear. Mercedes-Benz SA has already retrenched 702 workers, while the uncertainty of long-term operations remains as the impact of the new US tariffs deepens.
The wider automotive value chain employs over 40,000 people in Buffalo City, including those in original equipment manufacturing and component production. If this sector collapses, the consequences will be catastrophic for the local economy.
The DA has already tabled a practical and immediate five-point plan to stabilise the automotive sector and protect jobs in Buffalo City:
- Develop a provincial Automotive Transition Strategy to position the Eastern Cape as Africa’s electric vehicle manufacturing hub
- Expand into adjacent industries such as battery technology and hydrogen production to create new industrial opportunities
- Incentivise local manufacturing to boost competitiveness and reduce reliance on imports
- Invest in skills development and training to prepare workers for future automotive technologies
- Drive urgent engagement with the national government to secure favourable international trade agreements and protect the Eastern Cape automotive sector from future tariff shocks
These measures are achievable now with political will. They will protect existing jobs, retain investment and create a platform for long-term economic resilience in the automotive sector.
A stable economy requires leadership that is willing to confront challenges honestly and act in the interests of the people. Silence is not a strategy. Denial is not leadership. The people of Buffalo City deserve a government that puts their jobs and their future first.
The DA will continue to fight for urgent intervention to save automotive sector jobs and protect the economic future of Buffalo City.
Regards
Dr Vicky Knoetze MPL
DA Leader of the Official Opposition in the EC Legislature