For a soundbite of the chairperson of the committee, Ms Sonja Boshoff, please click here: https://iono.fm/e/1696323
Parliament, Tuesday, 14 July 2026 – The Chairperson of the Select Committee on Economic Development and Trade, Ms 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.
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,” Ms Boshoff said.
She said 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.
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. Any weakening of this sector would have consequences that extend far beyond the factory floor.
Ms Boshoff called on government to treat the latest developments as an urgent reminder to accelerate reforms aimed at strengthening South Africa’s investment competitiveness.
She said: “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.”
She further said that 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.
“Our Special Economic Zones should become genuine engines of competitiveness by reducing unnecessary regulatory barriers, streamlining approvals and creating conditions that encourage investment, innovation and job creation. As global manufacturers rethink where they invest, South Africa must ensure it is among the most attractive destinations.”
Ms Boshoff concluded by urging 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.
ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON ECONOMIC DEVELOPMENT AND TRADE, MS SONJA BOSHOFF.
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