Volkswagen’s Global Restructuring A Wake-Up Call


Picture: Volkswagen plant in South Africa/Generic

By AGISANANG SCUFF

15 July 2026 – The Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff has expressed serious concerns following reports that Volkswagen is considering one of the largest corporate restructurings in the history of the global automotive industry with as many as 100 000 positions reportedly under review worldwide. Boshoff said while no decisions affecting Volkswagen South Africa have been announced, these developments serve as a stark reminder that South Africa cannot afford to become complacent in an increasingly competitive global manufacturing environment.

“The reality is that every country is competing aggressively to retain automotive investment. South Africa cannot simply assume that future production lines and new model allocations will come our way. We have to earn them by creating an environment where manufacturers can compete successfully.

“The pressures facing Volkswagen, including rising production costs, shrinking profit margins on electric vehicles, increased competition from Chinese manufacturers and global trade tensions, are challenges confronting the automotive industry worldwide,” she said.

Boshoff further said the automotive sector remains one of South Africa’s most strategic industries, supporting hundreds of thousands of direct and indirect jobs across manufacturing, component suppliers, logistics, dealerships and small businesses. She added that any weakening of this sector would have consequences that extend far beyond the factory floor.

“We call on government to treat the latest developments as an urgent reminder to accelerate reforms aimed at strengthening South Africa’s investment competitiveness. We need policy certainty, reliable electricity, efficient ports and rail infrastructure, reduced regulatory burdens and the rapid implementation of measures that position South Africa to remain a preferred destination for automotive investment.

“South Africa should use this moment to reassess whether current industrial policies are sufficiently competitive in an era where investment decisions are increasingly influenced by speed, flexibility and the cost of doing business,” said Boshoff.

She said the Special Economic Zones (SEZs) should become genuine engines of competitiveness by reducing unnecessary regulatory barriers, streamlining approvals and creating conditions that encourage investment, innovation and job creation. Boshoff said as global manufacturers rethink where they invest, South Africa must ensure it is among the most attractive destinations.

“So, we urge all stakeholders, including government, organised labour and industry, to work together to safeguard one of the country’s most important economic sectors. Every automotive investment secured in South Africa protects livelihoods, strengthens local supply chains and contributes to economic growth.

“We cannot wait until jobs are under threat before we act. The time to strengthen our competitiveness is now,” she said.

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Street vendors and small business operators urged to exercise extreme caution


Picture: Street vendors and small business operators 

By STAFF REPORTER

29 June 2026 – The Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff has called on small business operators and street vendors to exercise extreme caution on 30 June and to avoid exposing themselves to unnecessary danger. Boshoff said the concerns many South Africans have regarding the impact of illegal immigration are genuine and deserve to be heard.

She further said these concerns point to systemic failures that require decisive and lawful action by the government. Boshoff added that, however, no grievance can ever justify vandalism, intimidation, assault or any other form of criminal conduct.

“The constitutional right to protest is fundamental to our democracy, but it must always be exercised peacefully, responsibly and within the confines of the law. The rights of those who protest must be balanced with the rights of others to safety, dignity, freedom of movement and the protection of their property.

“The committee has called on street vendors, particularly foreign nationals operating in affected areas, to avoid confrontation with protesters and to exercise heightened caution until the situation has stabilised,” she said.

Boshoff said the unofficial deadline of 30 June, set by anti-illegal immigration activists, has generated significant public attention, with demonstrations taking place across parts of the country over the past two months. She said while the frustrations expressed by many communities cannot simply be dismissed, any attempt to take the law into one’s own hands must be unequivocally condemned.

“The current situation highlights the urgent need for the government to demonstrate that immigration laws are being enforced consistently, fairly and without fear or favour. Government must communicate a clear and credible plan beyond the 30 June deadline.

“Failure to do so will create risks, uncertainty and allow legitimate public concerns to be exploited by opportunists or political actors seeking to incite instability,” said Boshoff.

She also called on the South African Police Service (SAPS) to uphold the constitution by acting professionally, impartially and without political interference. Boshoff said the police have a constitutional duty to protect every person within South Africa, to facilitate lawful and peaceful protest, and to act decisively against violence, intimidation, looting and criminality, regardless of who is responsible.

“Lawful protest must never be obstructed, but equally, the rule of law must prevail, and those who commit criminal acts must be held accountable. We urge all South Africans to act responsibly and peacefully.

“Our democracy is strongest when the constitution is respected, the law is applied equally and grievances are addressed through lawful processes rather than violence. South Africa must remain a country governed by the rule of law, where public order and human dignity are protected without exception,” she concluded.

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A call to convene National Crisis Summit amid job losses


By KEDIBONE MOLAETSI

21 September 2025 – The Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, has called on the Minister of Trade, Industry and Competition, Parks Tau to urgently convene a national crisis summit on job losses. Boshoff said mass retrenchments and downsizing by big companies have become “far too routine” in South Africa.

She further urged the ministers of trade, employment and labour, and small business development to act immediately. Boshoff added that the summit must bring together affected companies, trade unions and provincial and local government to find urgent solutions.

“Policy levers to protect jobs must be on the table. Relief on electricity and freight costs for vulnerable manufacturers, faster support for localisation, stronger interventions in the steel and automotive industries, and trade remedies against unfair imports, all need urgent consideration.

“We call for Section 189/189A consultations to be strengthened to ensure transparency, proper engagement with workers, fair severance and more retraining and redeployment opportunities,” she said.

Boshoff said regions hardest hit, such as the Eastern Cape, Gauteng and Free State, need targeted economic stimulus, labour absorption programmes and infrastructure to attract investment. She said the call comes after media reports that Coca-Cola plans to cut 680 jobs, while ArcelorMittal is considering further drastic cuts and possible closure.

“We do not need another national dialogue talk shop. Our economy is stagnant and paralysed by contradictory policies. Workers and communities are counting on decisive leadership.

“These job losses are too many, too frequent, and under too much avoidable pressure. We must act now, not just to protect livelihoods, but to safeguard South Africa’s industrial future,” said Boshoff.

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