Motor, catalytic converter firms hold breath for end to dispute

THE automotive industry in the Eastern Cape will heave a huge sigh of relief once the crippling and protracted strike in the platinum industry is over.

Nelson Mandela Bay Business Chamber chief executive Kevin Hustler said yesterday the platinum miners' strike had not yet had a damaging effect on the automotive industry.

"However, it has inconceivable potential to wreak havoc on the catalytic converter industry of our province," Hustler said. "The Nelson Mandela Bay Business Chamber and the Catalytic Converter Association have lobbied extensively at a national level, and as high as the office of President Jacob Zuma, with regards to looking at this red-flag issue.

"It has the potential to have far-reaching, long-term effects on our Eastern Cape motor industry."

There were 10 manufacturers of catalytic converters in the metro, and 90% of these converters were exported, Hustler said.

General Motors SA (GMSA) global purchasing and supply chain vice-president John Astbury said the catalytic convertor industry remained an important sector in South Africa. "All catalytic converters manufactured under GMSA contracts are primarily for export to the US and Europe," he said.

GMSA in partnership with component manufacturer Tenneco South Africa has been awarded a R6-billion contract to export catalytic converters to North America for final consumption by parent company General Motors Company.

The catalytic converters, which are manufactured at Tenneco South Africa's plant in Port Elizabeth, will be supplied for the assembly of GM's next generation V6 engines which will be used for vehicles built and sold on the North American market from next year and continuing to 2022. - Cindy Preller