Latest news with #automotive sector
Russia Today
4 days ago
- Automotive
- Russia Today
South African deputy president warns against prolonging US trade row
Serious economic repercussions across South Africa's automotive sector will occur if an amicable trade agreement is not reached with the United States, South Africa's Deputy President Paul Mashatile has warned. Speaking at the opening of the P20 Women's Parliament in Cape Town on Thursday, Mashatile said that the imposition of a 30% tariff on South African automotive exports to the US threatens to disrupt established trade flows, undermine competitiveness, and put thousands of jobs at risk. 'We must highlight that there will be repercussions felt throughout the entire value chain if we do not reach an amicable trade agreement with the White House,' Mashatile said. He noted that South African suppliers supporting domestic original equipment manufacturers (OEMs) that export to the US would likely face production cutbacks, putting pressure on planning, employment, and investment. 'Because of this, they would be unable to compete with goods from nations that have continued preferential or zero-duty access, such as those in the USMCA,' he said. Mashatile's comments come at a time when South Africa holds the G20 Presidency under the theme of 'Solidarity, Equality, Sustainability.' He emphasised the need for the automotive sector, a globally integrated industry, to actively contribute to discussions around economic resilience, sustainability, and governance reform. Addressing stakeholders gathered by the National Association of Automotive Component and Allied Manufacturers (NAACAM), Mashatile highlighted the significance of protecting one of the country's most vital industries. Mashatile said the automotive sector accounts for 22.6% of manufacturing output and 5.2% of GDP, employing over 115,000 people, 80,000 of whom work in the component sector. 'The automotive industry holds significant potential for shared prosperity through targeted industrial development,' he said. Mashatile commended NAACAM's ongoing work in localisation, supplier development, and transformation. He also expressed concern over growing internal challenges facing the sector, including infrastructure deficiencies, increased reliance on imports, and the slow transition to electric vehicles (EVs). He revealed that twelve companies had closed over the past two years, affecting over 4,000 workers, at a time when unemployment has climbed to 33.2%. Mashatile reaffirmed government's commitment to supporting the sector through programmes such as the Automotive Investment Scheme (AIS), the Automotive Production and Development Programme (APDP Phase 2), and the South African Automotive Masterplan 2035. The Masterplan aims to grow vehicle production to 1.4 million units, increase local content to 60%, double employment, and establish at least 130 new Black industrialists, he said. 'There is significant potential to create inclusive economic participation through localisation and transformation,' said Mashatile, pointing to future opportunities such as R30 billion in new procurement through a 5% increase in localisation rates. He also emphasised the strategic importance of the African Continental Free Trade Area (AfCFTA), saying it can reduce dependency on imports and help establish regional value chains, making African countries more self-reliant in automotive production. Mashatile called for unity and collaboration between government, industry, and international partners. 'Together, we can build a future where prosperity is shared by all, leaving behind a legacy of growth and opportunity for generations to come."First published by IOL
Forbes
23-07-2025
- Automotive
- Forbes
Why American Cars May Not Sell Well In Japan Despite Trade Deal
The Jeep is the biggest selling American-made car in Japan. (Photo By)"n President Trump is chuffed about his recent trade deal with Japan calling it the greatest in U.S. history. "I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan," Trump boasted at the White House on Tuesday evening. Japan also agreed to invest $550bn in the U.S. economy although no details were forthcoming as to which industries or sectors would benefit. Trump shakes hands with Japan's PM Shigeru Ishiba. (Photo by Jim WATSON / AFP) (Photo by JIM ... More WATSON/AFP via Getty Images) Meanwhile Japan's Prime Minister Shigeru Ishiba welcomed the announcement of the 15% reciprocal tariffs—down from 25%, stressing that it was "the lowest figure to date among countries with trade surpluses with the US'. Japan's stock market soared at news of 15% trade deal News of the deal was well-received by the Japanese stock market which saw shares soar with Mazda rising 17%, Toyota swelling by 15%, Mitsubishi up 13%, Honda increasing 11% and Nissan jumping 8%. Mazda, a carmaker who builds the majority of its vehicles in Japan, was particularly concerned about the proposed 25% tariffs. A quarter of Japan's US exports are from its critical automotive sector, which accounts for almost 3% of its economy. And it's with the auto sector that Trump really seems to have no idea what's really happening. The truth is two-fold. Firstly, before Trump started threatening Japan with tariffs, American cars entering the Japanese market, including Jeep, Cadillac and Corvette, were charged a zero tariff. Zilch! Japan has not charged tariffs or imports duties on imported cars from the U.S., or Europe for that matter, since the late 1970s. In contrast, America had imposed a 2.5% tariff on Japanese imports. Corvette sells in small numbers in Japan. (Photo By) But that's only part of the issue. Trump has continually complained that Japan does not take American cars. He has repeatedly said that the Asian nation is not open to U.S. vehicles. After this major trade deal announcement with Japan, Trump is bloating that the country will now open up to U.S. cars, trucks, rice and other agricultural products. Hey, buddy, that is not the reality. Japan is, and always has been open and ready to take all the American cars you wish to export. The bottom line is—apart from Jeep, which is the biggest selling American car in Japan, and a smattering of Cadillac and Corvette models, Japanese motorists, for the most part, don't want to buy American cars. Not even Tesla EVs, which do sell in Japan, but are imported from China, so not really seen as American. The fact is that old impressions die hard. From the 1970s through to the early 21st century, a mixture of U.S. cars were offered in Japan—including Ford, GM, Pontiac and Buick, in addition to Chrysler. But even though some brands delivered more stylish designs or more powerful engines than their Japanese counterparts, most American cars were considered too big for Japanese roads and carparks, and not as fuel-efficient or as reliable as Japanese cars, which were, on average, a little cheaper. Other critical factors that led to several brands exiting Japan, like Ford in 2016, were insufficient product lineups, and a poor dealer network. So, with all that in mind Mr Trump, to be honest, it does not matter how many American cars you force on the Japanese market, I cannot see how U.S. brands will sell here, no matter what Trump says. Japanese don't want them. It's like trying to force-feed sushi with wasabi to blue collar American families in the Rust Belt—it is a really tough sell.
Forbes
23-07-2025
- Automotive
- Forbes
Sorry Mr Trump But Your American Cars Won't Sell In Japan. Here's Why.
The Jeep is the biggest selling American-made car in Japan. (Photo By)"n President Trump is chuffed about his recent trade deal with Japan calling it the greatest in U.S. history. "I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan," Trump boasted at the White House on Tuesday evening. Japan also agreed to invest $550bn in the U.S. economy although no details were forthcoming as to which industries or sectors would benefit. Trump shakes hands with Japan's PM Shigeru Ishiba. (Photo by Jim WATSON / AFP) (Photo by JIM ... More WATSON/AFP via Getty Images) Meanwhile Japan's Prime Minister Shigeru Ishiba welcomed the announcement of the 15% reciprocal tariffs—down from 25%, stressing that it was "the lowest figure to date among countries with trade surpluses with the US'. Japan's stock market soared at news of 15% trade deal News of the deal was well-received by the Japanese stock market which saw shares soar with Mazda rising 17%, Toyota swelling by 15%, Mitsubishi up 13%, Honda increasing 11% and Nissan jumping 8%. Mazda, a carmaker who builds the majority of its vehicles in Japan, was particularly concerned about the proposed 25% tariffs. A quarter of Japan's US exports are from its critical automotive sector, which accounts for almost 3% of its economy. And it's with the auto sector that Trump really seems to have no idea what's really happening. The truth is two-fold. Firstly, before Trump started threatening Japan with tariffs, American cars entering the Japanese market, including Jeep, Cadillac and Corvette, were charged a zero tariff. Zilch! Japan has not charged tariffs or imports duties on imported cars from the U.S., or Europe for that matter, since the late 1970s. In contrast, America had imposed a 2.5% tariff on Japanese imports. Corvette sells in small numbers in Japan. (Photo By) But that's only part of the issue. Trump has continually complained that Japan does not take American cars. He has repeatedly said that the Asian nation is not open to U.S. vehicles. After this major trade deal announcement with Japan, Trump is bloating that the country will now open up to U.S. cars, trucks, rice and other agricultural products. Hey, buddy, that is not the reality. Japan is, and always has been open and ready to take all the American cars you wish to export. The bottom line is—apart from Jeep, which is the biggest selling American car in Japan, and a smattering of Cadillac and Corvette models, Japanese motorists, for the most part, don't want to buy American cars. Not even Tesla EVs, which do sell in Japan, but are imported from China, so not really seen as American. The fact is that old impressions die hard. From the 1970s through to the early 21st century, a mixture of U.S. cars were offered in Japan—including Ford, GM, Pontiac and Buick, in addition to Chrysler. But even though some brands delivered more stylish designs or more powerful engines than their Japanese counterparts, most American cars were considered too big for Japanese roads and carparks, and not as fuel-efficient or as reliable as Japanese cars, which were, on average, a little cheaper. Other critical factors that led to several brands exiting Japan, like Ford in 2016, were insufficient product lineups, and a poor dealer network. So, with all that in mind Mr Trump, to be honest, it does not matter how many American cars you force on the Japanese market, I cannot see how U.S. brands will sell here, no matter what Trump says. Japanese don't want them. It's like trying to force-feed sushi with wasabi to blue collar American families in the Rust Belt—it is a really tough sell.
