In a further blow to the crisis-hit SA motor industry, US-owned Ford Southern Africa has confirmed plans to retrench hundreds of workers.
Trade unions said at least 470 employees were likely to lose their jobs. Ford said the action was necessary to “respond to evolving market demands”.
A flood of imports is undercutting prices and demand for SA-made vehicles, while export demand is also under pressure. Ford Southern Africa exports almost nothing to the US so is unaffected by President Donald Trump’s imposition of 25% tariffs on vehicle imports.
Production of the Ranger bakkie at Ford’s Silverton, Tshwane assembly plant is well short of its 200,000 annual capacity. In 2022, the US parent invested more than R16bn to build the latest Ranger model there.
SA auto industry at a glance
22% of manufacturing output
5 – 5.3%
115,000 direct
80,000+ workers
The Solidarity trade union said Ford had informed it that 391 assembly operator jobs would be lost at Silverton, and 73 at the company’s Eastern Cape engine assembly plant in Struandale, Gqeberha. A further 10 administrative jobs would also be terminated.
Ford said in a statement that it was “consulting representative unions ... regarding these proposed changes”. It added that some workers would be offered voluntary retrenchment packages.
Last year, Mercedes-Benz SA announced it was cutting 700 jobs at its East London assembly plant because of falling global demand for its C-Class car. Other local motor companies have also reported volume cuts, leading, in turn, to thousands of job losses at automotive components suppliers.
In June, tyre manufacturer Goodyear announced that its Eastern Cape manufacturing plant would close at the end of this year, with the loss of 750 jobs.
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