Thousands of South African families are confronting uncertainty and anxiety as the country’s automotive sector continues to shed jobs and shutter plants. The African Transformation Movement (ATM) has called on the Minister of Trade, Industry, and Competition, Honourable Parks Tau, to act immediately after a wave of closures and layoffs has left communities in Pretoria, Gqeberha, East London, and beyond grappling with sudden unemployment.
In a letter sent to Minister Tau on 8 December, ATM Parliamentary Leader Vuyo Zungula described the situation as a national crisis. According to the letter, over 4,000 jobs have been lost in the last two years, with 12 companies, including major players such as Mercedes-Benz, Ford, and Goodyear, shutting their operations or reducing staff. Zungula warned that the East London community faces the potential collapse of its local economy if the Mercedes-Benz plant closes, which could turn the city into what he described as a “ghost town.”
For many workers, the job losses have immediate and tangible consequences. At Ford’s Silverton and Struandale plants, nearly 500 workers have been let go, leaving entire families scrambling to make ends meet. Parents who had relied on steady wages to feed their children now face difficult choices about schooling, nutrition, and household expenses. The ripple effect extends beyond factory floors: dealerships, maintenance and repair services, logistics companies, and local suppliers are also feeling the strain, threatening thousands of additional jobs that are indirectly tied to manufacturing.
“The recent wave of plant closures, production halts, and mass layoffs by major manufacturers is nothing short of a national crisis,” Zungula wrote. “It is threatening the livelihoods of thousands and the economic stability of entire communities.”
The human toll of these closures is compounded by the uncertainty over the sector’s future. Families who have lived in these industrial towns for generations now face the prospect of relocation, retraining, or finding work in sectors that are already struggling to absorb new entrants. For many, the closure of a factory is not just the loss of a job, but the loss of identity and security.
The ATM letter also raised concerns about the growing influx of Asian vehicles, particularly from China, which now hold nearly 12 percent of the South African market. While imports may provide affordable options for consumers, Zungula said they are undermining local production, displacing workers, and weakening the broader economy. He urged the government to ensure that foreign investment in the automotive sector is tied to local manufacturing commitments rather than simply flooding the market with imports.
The human impact of this trend can be seen in communities across the country. In East London, where the Mercedes-Benz plant has been a cornerstone of the local economy for decades, workers describe sleepless nights and mounting stress. Families worry about losing homes, paying school fees, and feeding children. Similarly, in Pretoria and Gqeberha, workers who have spent years developing skills in automotive manufacturing are facing the uncertainty of unemployment, with limited prospects in other industries.
Zungula’s letter asked what the government is doing to support workers, including retraining programs, emergency financial assistance, and incentives to retain production in South Africa. He warned that failure to act decisively could exacerbate inequality and unemployment in communities already struggling with the broader economic challenges facing the country.
“What is to happen to the trickle-down economies affected by these closures? Many more jobs are lost down the line in dealerships, maintenance, logistics, and export sectors. These are jobs that put food on the table,” Zungula wrote.
The letter concluded with a call for bold leadership, emphasizing that South Africans expect the government to protect livelihoods and revitalize the automotive sector before more families are pushed into economic despair.
At the time of publication, Minister Tau had not commented on the letter or the crisis in the automotive industry. Families affected by the closures continue to face uncertainty, hoping for urgent action to safeguard jobs and secure their communities’ economic future.
