In a further blow to the crisis-hit South African 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 South African-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.
SA auto industry at a glance
22% of manufacturing output
5 – 5.3%
115,000 direct
80,000+ workers
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.
The Solidarity trade union said Ford informed it that 391 assembly operator jobs will be lost at Silverton and 73 at the company’s Eastern Cape engine assembly plant in Struandale, Gqeberha. A further 10 administrative jobs will also be terminated.
Ford said it is “consulting representative unions regarding these proposed changes”. It added some workers will 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 to thousands of job losses at automotive components suppliers.
In June tyre manufacturer Goodyear announced its Eastern Cape manufacturing plant would close at the end of this year with the loss of 750 jobs.
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