Largest car assembly plant closes

Zimbabwe’s largest vehicle assembly plant, Willowvale Mazda Motor Industries (WMMI), which is reeling from the crippling foreign currency shortage facing the country, has been closed indefinitely, the ‘Daily News’ reported on Monday. The closure throws into uncertainty the future of over 300 workers. Other downstream industries that include car dealers, rubber merchants and tyre manufacturers, which heavily depend on the car assembly firm, will immediately feel the impact of Willowvale’s closure. WMMI workers, who were supposed to resume work last week, were informed of the indefinite closure by the group chairman, Mike Ndudzo, at a meeting held at the Industrial Development Corporation headquarters in Harare on Friday. A senior WMMI manager said yesterday the workers would be required to report at the vehicle plant on 3 September in case the situation improved. But a representative of the workers said that the employees suspected that a lot of underhand deals were going on at the company. “How can production plunge to zero for a company that enjoys 75 percent share of the market. Surprisingly, Quest Motor Corporation, which is our competitor is doing well,” said the representative. WMMI is reeling under a crippling foreign currency shortage and cut-throat competition from vehicle imports. The company normally assembles 8,000 units annually, but this year’s production was expected to come down to 2,000 units.