More than 400 workers in South Africa’s automotive industry face job losses after Ford Motor Company of Southern Africa confirmed a planned reduction in its workforce.
The company said the move was necessary to align its manufacturing operations with current and future market conditions.
Ford, in a statement, noted that the job losses were part of “ongoing efforts to optimise production and respond to evolving market demands.”
According to the South African Solidarity union, the decision will affect over 470 employees, with 391 operator positions at Ford’s Silverton assembly plant in Pretoria, 73 roles at the Struandale engine plant in Gqeberha, and 10 administrative jobs.
The company stressed that the adjustments were essential to maintain competitiveness, but unions have expressed concern over the wider implications for South Africa’s auto sector.
“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry,” said Willie Venter, deputy general secretary of Solidarity.
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He added that economic pressures, political uncertainties, and government policies were contributing to the industry’s decline.
“We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly,” he warned.
The cuts highlight the mounting challenges facing South Africa’s automotive industry, long regarded as a key pillar of the country’s manufacturing base.
South Africa’s automotive industry, which employs 115,000 people, is under strain from weak domestic sales, rising imports, and low local content.
Trade Minister Ebrahim Patel said these pressures have led to 12 company closures and over 4,000 job losses in the past two years.
Toyota South Africa’s CEO told Reuters this month that the big seven car companies manufacturing in South Africa including Ford, Volkswagen and Mercedes-Benz, have sent a policy recommendation document to the trade minister on how to support and protect the local industry.
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Image Credit: Reuters
