As the apartheid-era reparations lawsuits filed against five multinational corporations, including automotive manufacturers Ford, General Motors and Daimler, continued on Monday, in New York, in the US, Mercedes-Benz South Africa (MBSA) said the claims were unsubstantiated, adding that it was confident the case would be decided in favour of its German parent, the Daimler group.

The plaintiffs were seeking unspecified monetary damages against the companies they say had supported South Africa's former apartheid government.

The case made headlines last year when the South African government seemingly made an about-turn, announcing that it would no longer oppose the lawsuits, as was the case under former President Thabo Mbeki.

It had earlier noted that the case might cost the country foreign investment opportunities.

This had caused concern in the local automotive industry that the three vehicle manufactures, all with manufacturing plants in South Africa, might reconsider their investment, even if none of the manufacturers had ever hinted that this might be the case.

"Yes, we are worried," one East London Industrial Development Zone executive told Engineering News Online in December.

The Mercedes-Benz plant is located in East London, and exports the C-Class to the US. It also assembles Mitsubishi pick-ups, as well as trucks and buses.

With the last ruling in the case (on September 10, 2009) the Court of Appeal invited the governments of the US, South Africa, Germany and other interested countries to submit their positions on the accusations to the Court of Appeal by October 14, 2009.

These positions were the subject of oral proceedings before the Court of Appeal on Monday.

"We welcome the decision of the US court to examine the fundamental question of whether international law extends liability to corporations," MBSA said in a statement.

The company - a wholly owned subsidiary of the German-based Daimler - said it "has a long and successful history in South Africa as a multinational and multicultural organisation that regards human rights as a fundamental principle in business".

The statement said Daimler "at no time cooperated with the South African Security Forces for the perpetuation of apartheid. In fact, Daimler has always stood for nondiscrimination against all South African employees, independent of race, as much as they could. At numerous times, Daimler's management publicly expressed its opposition to apartheid, including the head of MBSA at that time, Jürgen Schrempp, in the immediate presence of representatives of the apartheid regime.

"In 1999, Nelson Mandela awarded Mr Schrempp South Africa's highest civilian medal, the Order of Good Hope, in recognition of his involvement in South Africa."

The statement also noted that MBSA willingly participated in the business and labour hearings of the Truth and Reconciliation Commission.

"During the apartheid era, we resisted the urgings of many political groups to end our involvement in South Africa because we were convinced, and still are, that one can only change things if one is in the country and involved in society.

"As our parent company, Daimler, we regard these class actions as unsubstantiated and are, therefore, confident that the lawsuit will be decided in favour of Daimler. As to the lawsuit itself, we cannot comment further at this time because of the ongoing process."

GENERAL MOTORS

General Motors South Africa (GMSA) said in a statement, released on Monday, that its US parent, the General Motors Corporation (GM), "adamantly opposed apartheid and became a proactive corporate leader in expressing this stand both publicly and privately".

It said the corporation's opposition to apartheid was "well demonstrated" by, among other actions, the sale of its operation to an employee/management team in 1986 to ensure employees would retain their jobs following GM's exit from the country.

"The federal lawsuit, purportedly brought on behalf of black South Africans victimised by the apartheid government, seeks reparations and other relief from a number of international corporations, including GM," noted the statement.

However, should the case succeed, claimants might not receive much from GM.

"As a result of GM's bankruptcy, legal liabilities prior to July 10, 2009, remain with the former General Motors Corporation, now known as Motors Liquidation Company," said the statement.

"Claimants will have the opportunity to submit claims and have them resolved as provided by the US bankruptcy code and other applicable laws, both as to amount and priority."

The company said the new GM was "firmly committed to basic human rights".

GMSA assembles vehicles in Port Elizabeth for the local market.

FORD MOTOR COMPANY

A spokesperson for the Ford Motor Company in South Africa said on Monday that the case was still "ongoing", and that the company was monitoring events. She noted that it was impossible to comment as the situation remained fluid.

Ford manufactures vehicles for the local and African markets at its Pretoria plant. It is in the process of gearing up for the production and export of a new engine and pick-up in a billion-rand-plus investment.