Yesterday, BuzzSouthAfrica confirmed GM’s disinvestment from South Africa. According to the company, the disinvestment was necessary in order to restructure its international markets and strengthen its global business performance.
To the EFF however, Donald Trump’s protectionist policies inspired GM’s disinvestment from South Africa.
EFF specified that General Motors’ decision to disinvest from South Africa will lead to loss of thousands of jobs and increase the already high unemployment rate.
“The EFF is in no shock to learn of General Motors’ decision to disinvest from South Africa. It is one of many USA companies that will close shop in foreign lands to go back home and comply with protectionist policies of Donald Trump.
“(We) long called on South Africa to build internal industrial capacity and not rely on foreign investments who just leave us when they deem fit.
“The automotive support program in South Africa is one of the best and most generous in the world, and yet we are still faced with divestments like General Motors,” wailed the party.
With that, the Fighters proclaimed that the government of the ANC has failed to develop and prioritise the internal capacity of South Africa’s automotive industry.
“Failure to build our own automotive industry will result in even more job losses and the destabilising of the entire automotive industry. This will soon have a ripple effect on other industries…,” EFF warned.
The party advocated that a permanent solution is for South Africa to build its own automotive industry, subsidise and provide it with a solid market through government budget and offtake.
“Not only will this be a permanent solution for broadening our own mass based production and creating a solid market…it will be a permanent solution in creating sustainable jobs and the overall development of our country.
“It must worry us, as a country, living in a high-tech industrial age that we do not produce our own automobiles. So much of our economy depends on automobiles, yet our state has not invested in the materialisation of sovereignty in the automobile industry.
“This is also the case in essential technologies like mobile phones, televisions and household appliances.
“The sooner we locally produce the majority of the good we consume, the faster we get to a sustainable solution to high unemployment, poverty and inequality,” upheld the Fighters.