Components-maker MA Automotive goes into short time to gear up for BMW X3 production

Auto components-manufacturer, MA Automotive Die and Cast in Rosslyn, Pretoria is putting its workers on short time from today, and scaling down capacity for the rest of the year in preparation for the BMW X3, the first electric vehicle to be manufactured in this country, albeit for the export market.

Short time is the condition of working fewer than the regular hours per day or days per week.

MA Regional Leader Henk van der Merwe confirmed last week that the company was introducing intermittent short time in line with run out of a current model, and introduction of the replacement model.

“As we ramp up to reach full volume, so will our short time reduce. We have been very transparent with our people in preparation for the run-out and ramp-up. Our recent communication must be viewed in this context,” Van der Merwe said.

This is in reference to a memorandum issued by MA last week informing workers of Rosslyn’s plants 1 and 2, that short time would start from August 12 through the month of September, with limited production during October and November, until the shutdown in December.

The company advised that employees needed to ensure that their leave applications reach payroll by this Friday indicating the application for leave, negative leave, and payout of bonus tax savings.

MA Automotive Die and Cast was responding to questions from Business Report after its short time announcement stirred speculation that all was not well with BMW, and that potential job losses loomed.

Speculation also came after the latest National Association of Automobile Manufacturers of South Africa (Naamsa) sales figures for July indicated car export figures plummeted 33.2% to 25 461 units last month, compared with July, 2023 with Naamsa blaming “adverse weather conditions during the month as well as declining exports to Europe, the domestic automotive industry’s top export region”.

Van der Merwe said, “You must be aware that one of our main customers is introducing a new vehicle to be manufactured in Rosslyn at the beginning of 2025. This is all normal, we were updating our workers as we do every quarter. We are not even losing jobs,” he said.

BMW marked its 50th anniversary with the announcement in June, last year that Plant Rosslyn, the group’s first foreign facility would be adapted with a R4.2 billion investment to cater for production of electric vehicles.

Dr Milan Nedeljković, BMW board member for production, said the group would manufacture the BMW X3 as a plug-in hybrid for global export in South Africa.

The investment was accompanied by specialist training for more than 300 employees at the plant.

Plant Rosslyn will be the sole producer of the X3 plug-in hybrid variant, catering to the rising demand for electric vehicles worldwide.

The investment secures not only the future of the plant but also the livelihoods of over 20 000 people directly and indirectly employed.

Plant Rosslyn has produced more than 1.6 million vehicles to date and exported them to more than 40 countries worldwide, including 14 nations in Africa. Its production portfolio has included the BMW 1800 SA and BMW 2000 SA, as well as the BMW 5 Series and 7 Series.

Trade Union Numsa said, "Short time has a negative impact on workers. “

For example, it said, at Toyota workers were being paid for four days a week, when they are used to being paid for five days.

“The financial impact was so bad, that some of them withdrew from the company savings scheme and withdrew their annual bonuses early in order to sustain themselves and take care of their families,” it added.

BUSINESS REPORT