Ford Retrenchments | Manufacturer plans to retrench nearly 500 workers. Image: IOL.
(The Post News)- Ford Motor Company in South Africa has confirmed the retrenchment of nearly 500 workers amid declining export demand in Europe and regulatory changes in the United Kingdom that have reshaped the economics of its best-selling Ranger pickup.
Reports indicate that the cuts affect 474 employees across Ford’s South African operations, including 391 roles at the Silverton assembly plant in Pretoria and 73 positions at the Struandale engine facility in Gqeberha. With production scaled back from three shifts to two, Ford expects annual output to decline to around 100,000 vehicles, significantly below the plant’s installed capacity of 140,000.
Ford said in a statement, “This decision highlights just how vulnerable our auto industry is to external shocks. If one regulatory change in London can wipe out hundreds of jobs in Pretoria and Gqeberha, then the structural fragility of the industry is plain for all to see.
The retrenchments have sparked concern among trade unions and industry observers. Union Solidarity warned the move could signal deeper risks for South Africa’s automotive sector, which employs more than 100,000 people directly and contributes nearly 5% to GDP.
“We are facing subdued international demand, particularly in Europe and the UK. The changes to UK vehicle taxation earlier this year have had a severe impact on Ranger sales. Unfortunately, this has left us with no choice but to realign our operations,” added the statement.
According to Union Solidarity, UK orders for the Ranger “dropped sharply” while the plug-in hybrid model “failed to gain traction internationally” due to high costs and restrictive trade rules.
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