Undoubtedly, the automobile industry is that currently suffers most from the effects of the international financial crisis. In addition to sector giants, such as General Motors and Ford which are on the verge of bankruptcy, European suppliers dealing with Tunisian partners don’t come under better banner, since they are plainly involved in a resizing process, an euphemism for a compound of drastic measures including massive layoffs, lockouts, downsizing plans that affect the automotive components industry in Tunisia. But what makes things further get worse is that, for example, in France, the bailout plan devised by the government to save the auto industry does not include car part manufacturing sector.
Henceforth, Tunisia is inevitably left open to this turmoil that it has to manage in line with an international context at least deleterious , in such a way that it keeps its 2% share in automotive components industry in the world.
Crisis forerunners?
For the moment, based on early trends that are beginning to emerge, the shock wave is far from hitting the whole sector in Tunisia. Staff cuts are reported here and there with layoffs affecting contract employees, as well as cuts in working hours in many factories and administrative leave . But, there is no rush. The question arises, however, how much longer, knowing that the projections don’t suggest an upswing, at least not in the next year.
Thus, as far as Chakira group automotive components is concerned, a 38% slowdown is reported representing the difference between the scheduled growth which stands at 50% and the real one that won’t exceed 12% late December 2008. This downward trend could diminish during the third quarter of 2009, the activity decline may go up to 15%.
In all cases, production should be adjusted, or as said currently by manufacturers, resized according to world market needs.
The only relevant case identified to date concerns Outilive group involved in manufacturing car safety belts and steering wheel covers ; located in Zaghouan governorate , which laid off 19 employees. Moreover, some totally exporting companies located in the region started since last October cutting working hours.
Regarding the Sahel governorates where operate many automotive components units, answers are expected to be provided following requests from Sousse Utica Regional Union relating to the crisis impact on business. It is hoped that this will be done before the end of the week.
Controversial signs!
This being the case, information will be available on the impact of orders slowdown from European companies, including French and German ones, so as could be checked the true extent of the effects of the crisis on the Tunisian industry, even if ,for the time being, the latest official figures show a lower rate of growth of Tunisian exports in terms of engineering industries by 4% compared to the 30% recorded during the first nine months of 2007 and to the 26% during the first nine months of this year.
However, the real fears crystallize around relocation projects that could inevitably be carried out by European manufacturers and suppliers. Plans underway in France, for example, don’t prompt to be optimistic, knowing that one of the conditions set by the French government to apply for the bailout plan destined to auto industry urges beneficiaries not to relocate their production.
However, two French companies, as far as is known, decided to maintain their activities in Tunisia: Citroen, whose Director General Gilles Michel assured, during a recent visit to Tunisia that “the place of Tunisian suppliers and manufacturers remain preserved even if the entire chain will undergo some drop” and, more recently, Vernicolor, the French manufacturer automobile paint manufacturer which has just announced that it maintained its activity in Tunisia and Romania subsidiaries.