Japanese automaker Nissan's factory in South Africa now faces an uncertain future as the automaker grapples with financial strain, potential plant closures, and fierce competition in the accelerating green energy race.
The automotive giant announced plans last month to shut down seven plants and shed 20,000 jobs in its global workforce, as it suffers a financial crunch. Nissan South Africa has remained tight-lipped on how this plan will affect its operations.
"They are still obviously waiting for confirmation from their global principals. And they will obviously inform us once they are ready to be able to tell us what's happening. But obviously, I think it is absolutely clear that Nissan, globally, will be rationalizing its operations. And whether South Africa is going to be impacted directly or not, I think that jury is still out," said Mike Mabasa, CEO of the Association of Auto Manufacturers of South Africa.
Nissan has been part of South Africa's automotive landscape for over 60 years. First as an assembly plant in 1963, then going into full scale production in 1973, and has since seen many iconic brands roll off the production line.
Analysts believe the struggle has been a casualty of its own failures. Nissan took the lead in the electric vehicles with the Leaf, but has fallen behind its competitors.
"Not all the legacy automakers are joining the EV revolution, if I can call it that. And if they don't keep up with the changes, then they will lose out. I mean, they are all losing sales at the moment and the Chinese vehicle manufacturers that are really into this now are gaining ground. I mean, BYD is the biggest automotive manufacturer in the world now. And you would have never said that a few years back," said Carel Snyman, an independent automotive analyst.
The global automotive landscape is going through a rapid transformation as the green energy revolution takes shape. Experts said that while a possible closure will temporarily set the industry back, it could pave the way for new investment.
Japanese auto factory in S Africa faces possible closure amid operational challenges
The U.S. military strike against Venezuela and capture of its president, Nicolas Maduro, has shocked the international community, triggering a steady stream of condemnation and serious concerns worldwide.
Brazil, Chile, Colombia, Mexico, Uruguay and Spain issued a joint statement on Sunday, expressing serious concern about and firm opposition to the U.S. unilateral military operations in Venezuela.
The U.S. actions contravene fundamental principles of international law, particularly the prohibition on the use or threat of force, and respect for the sovereignty and territorial integrity of States, as enshrined in the UN Charter, constituting an extremely dangerous precedent against peace and regional security, according to the statement.
In expressing profound concern and firm rejection, the six countries stressed in the statement that the situation in Venezuela must be resolved exclusively by peaceful means, and through dialogue, negotiation and respect for the will of the Venezuelan people in all its expressions, without external interference and in accordance with international law.
Only an inclusive political process, led by Venezuelans, can lead to a democratic, sustainable solution that respects human dignity, according to the statement.
Spanish Prime Minister Pedro Sanchez condemned the U.S. raid in Venezuela as a violation of international law, adding that the Spanish government always advocates and defends international law and peaceful resolution of conflicts.
Addressing a meeting of the Community of Latin American and Caribbean States (CELAC), Cuban Foreign Minister Bruno Rodriguez demanded the unconditional and immediate release of Maduro and his wife.
Noting that Latin America and the Caribbean are a zone of peace, he expressed his firm opposition to the use of force, which is an unshakable principle.
Any aggression against Venezuela shall be regarded as an attack against all CELAC member states, and nations must collectively oppose it, he stressed.
The South African government denounced the U.S. attack on Venezuela as a violation of international law, according to a statement released on Sunday.
History has repeatedly demonstrated that military invasions against sovereign states yield only instability and deepening crisis, the statement said.
South Africa calls on the UN Security Council to urgently convene a session to address this situation, according to the statement.
Serbian President Aleksandar Vucic said what happened in Venezuela demonstrates that international law and the UN Charter are losing their practical effectiveness.
U.S. military action against Venezuela marks a dangerous precedent, as similar actions could be taken against any other nations, he said.
In addition, the foreign ministries of Namibia, Singapore, Oman and Pakistan also issued statements on the same day, expressing grave concern over U.S. interference in Venezuela's internal affairs.
They emphasized the need to uphold international law and the principles of the UN Charter while respecting Venezuela's sovereignty.
They also called on all parties to exercise restraint and resolve the crisis through peaceful dialogue.
U.S. move against Venezuela sparks condemnation, concerns worldwide
