Thabang Mokopanele
8 February 2008
Johannesburg — CAREFUL planning and cutting back on electricity consumption by motor manufacturing companies will probably avert an energy crisis in the industry, but unscheduled power cuts remain a threat.
National Automobile Association of SA (Naamsa) executive director Nico Vermeulen said yesterday the vehicle manufacturing industry -- which has many export programmes lined up for this year -- is vulnerable to electricity shortages.
"The industry has experienced some disruptions due to power cuts. There have been challenges and problems but we have held talks with Eskom looking at voluntary energy saving by manufacturers," he says.
As with the mining companies, Eskom has asked motor manufacturers to cut electricity consumption 10%. But unlike the mining industry, which had to close shop completely, the motor industry has never had to contend with no electricity.
Vermeulen says although some motor manufacturers have invested in generators that cost in the region of R600000 each, they do not have the capacity to run full production lines .
Concerns have been raised about electricity disruptions in a sector that employs about 180000 people.
"The industry is focusing on energy efficiency with most motor manufacturers having already implemented electricity reduction programmes," Vermeulen says. "Most of them have already reduced their electricity consumption by between 5% and 10%, but asking them to cut even further will be a challenge."
Vermeulen would not say how much production ha d fallen due to power outages. He says it is hard to assess.
Retail Motor Industry Organisation CE Jeff Osborne says power shortages are hitting used car dealers, petrol stations, motor mechanics and panel beaters.
"We have seen 13 dealers close in the past two or three months and we suspect there is more to come -- this power shortage is the last thing we need."
The power cuts are not yet likely to threaten jobs in the motor industry because export programmes by major motor manufacturers will keep employment stable.
General Motors SA vice-president for vehicle assembly operations Rick Demuynck says the company has been in contact with the municipality responsible for supplying electricity.
"We have identified numerous incentives where we have been able to reduce load on a permanent basis.
"In the last two weeks we have managed to achieve a 5% load reduction and we are continuing to look for further opportunities," Demuynck says.
Volkswagen of SA plant engineering manager Nick Chapman says the company has reduced its daily energy consumption 10% at an annual saving of R1,2m since implementing an energy management programme in 2003. The company aims to cut back its energy consumption up to 15% a day by 2010.
"The time is now for everyone to take a proactive stand. We have a power crisis, and it will continue unless we all do something about it," Chapman says.
To date, he says, the company has invested about R4m in its energy management drive.
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