) Durban, South Africa production plant has
experienced an "illegal" strike
due to payment issues with workers.
South Africa is ahead of African National Congress elections
this December, and the latest strike has pressured President
Jacob Zuma's role and leadership in relation to South Africa's
largest economy. In August, 34 workers at a platinum mine were
killed while striking and Zuma has fallen under immense criticism
by the public for failing to address these killings.
This strike follows suit of the
labor strike talks
among the Canadian Auto Workers (
) against the Detroit automakers recently, all of which came to
agreements before a strike was enacted.
), Ford (NYSE:
) and General Motors (NYSE:
) all reached
new four year agreements
with the CAW, and subsequently automakers have experienced
here in the United States.
automakers have experienced troubles
lately from anti-Japanese sentiments in China, causing Toyota and
) to close down production through October.
Toyota's Durban plant currently manufactures 120,000 vehicles
annually, 50 percent of which are intended for export. Toyota
hopes to resolve the strike soon in order to keep production
going in order to maintain
recent confidence in vehicle sales
Toyota recently reported sales figures that beat Ford and GM,
after vehicle sales as a whole surged 12 percent in the month of
September. Foreign automakers have experienced strength while
domestic automakers saw smaller gains.
Premarket, shares of Toyota are up 2.17 percent after closing
down Wednesday 1.81 percent. Year to date, Toyota shares are up
16.57 percent as consumers begin to feel more comfortable
purchasing new vehicles.
Analyst sentiments for the automaker are positive. Bank of
America recently raised first quarter expectations on Toyota
ahead of Honda (NYSE:
) and Nissan based on recent showing that the latter two have
struggled somewhat in global sales. Toyota has plans for new
powertrain/transmission options and will continue to ramp up
hybrid vehicle development and production in order to meet
Corporate Average Fuel Economy (
) standards, despite
doubts surrounding the success
of the sector's attractiveness.
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