Concerns for Samoan manufacturing

The future is looking uncertain for Samoa’s largest formal private employer, the Yazaki motor vehicle component factory. Prior to the financial crisis the factory employed over 2000 workers and still offers a unique example of manufacturing in the region. The recent announcement that Holden, a subsidiary of General Motors, is to pull out of Australia by 2017 and the fear that other vehicle manufactures may soon follow suit is a cause for concern in Samoa. Some reports place the blame on recent cuts in Australian government support, however restructuring of their motor industry has been taking place since the financial crisis and has already forced over 1,000 workers out from the Samoan plant.  Reports from the factory’s general manager are that this may not all be bad news so long as Toyota can remain as a customer, however diversifying exports into other markets such as China may be the only long term way to protect further job losses.