Parliament, Thursday, 5 February 2026 – The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has characterised the reported pending closure of Volkswagen Kariega plant as national crisis that needs the President’s attention.
She said: “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.”
Volkswagen Group Africa, which plays a central role in South Africa’s automotive sector, has reportedly publicly warned that uncertainty and delay in government decision-making are pushing its Kariega facility to a crossroads.
Ms Boshoff said without swift policy certainty, the threat of closure and the cascading job losses that would follow, looms large. “We do not need to get on such a drastic and slippery road. Our economy is too delicate and stagnant,” she added.
She said the Kariega plant has anchored manufacturing jobs for decades and thus driven exports from the Eastern Cape. “Its success has demonstrated the value of South Africa’s automotive sector as an engine of industrialisation and economic participation. Yet today, the very absence of decisive leadership jeopardises investment, supplier confidence, and the livelihoods of thousands.”
She said South Africa cannot sit idly by while a marquee manufacturer considers shutting its doors. “Our unemployment levels are already unacceptably high, further closures would deepen economic hardship and accelerate de-industrialisation trends that have damaged other sectors.”
She called on President Ramaphosa and the Minister of Trade, Industry and Competition, Mr Parks Tau, to immediately engage with Volkswagen Group Africa and industry leadership.
“It would be preferable if 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,” concluded Ms Boshoff.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE, MS SONJA BOSHOFF.
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