Parliament urges Ramaphosa to act swiftly as policy uncertainty puts Volkswagen plant jobs at risk
The Chairperson of Parliament’s Select Committee on Economic Development and Trade, Sonja Boshoff, has called on President Cyril Ramaphosa and Minister Parks Tau to intervene
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The Chairperson of Parliament’s Select Committee on Economic Development and Trade, Sonja Boshoff, has called on President Cyril Ramaphosa and Minister Parks Tau to intervene as delays in government policy threaten thousands of jobs at the Volkswagen Kariega plant.
IOL previously reported that Volkswagen Group Africa chairperson Martina Biene had written directly to President Ramaphosa before Christmas, warning that 2026 is a “make or break” year for the company’s next investment decision. Biene said policy uncertainty and delays could push the Kariega facility to a crossroads, with the future of its next major export program still unclear.
The company employs around 3,500 people at the Kariega plant, which is the world’s largest exporter of the Volkswagen Polo. The plant is set to produce the new Polo-based Tengo SUV from 2027; however, this Brazilian-designed product, created for emerging markets, does not have the same export potential as the Polo.
While the plant continues to operate normally, both Volkswagen and industry experts say securing policy clarity and future investment is critical to protecting jobs and sustaining the region’s industrial base.
Boshoff said South Africa cannot afford further industrial decline or job losses and urged the government to finalise critical industrial policy decisions without delay.
“The President must act. South Africa cannot afford daily industrial decline, job losses and factory closures. The report that the Volkswagen Kariega plant in the Eastern Cape faces closure if the Government does not urgently implement critical industrial policy is alarming," Boshoff said.
Boshoff added that the Kariega plant has anchored manufacturing jobs for decades and driven exports from the Eastern Cape.
“It would be preferable if the government would finalise the critical industrial policy decisions without delays, and that should include support for the Automotive Industry Master Plan and clear measures to protect and grow local manufacturing.”
“The South African Government must demonstrate leadership now, not in months or years, before further closures and job losses become unavoidable. The future of South African manufacturing and the prosperity of thousands of working families depend on it. It is time to stop the proverbial presses and focus all our attention to this pending disaster,” she added.
mthobisi.nozulela@iol.co.za
IOL Business