Ford South Africa to Lay Off Over 470 Employees at Car and Engine Plants

According to a Reuters report, on August 28, the South African United Union stated that Ford Motor Company of South Africa plans to lay off more than 470 employees in order to adjust production capacity to match current and future market demand.

Image source: Ford Motor Company

The South African Solidarity Union stated in a release that Ford Motor Company has sent official notices to the union and other relevant parties to inform them of its intention to lay off employees. According to the union, the affected positions include 391 operator posts at the Silverton Assembly Plant in Pretoria, South Africa; 73 positions at the Struandale Engine Plant in Gqeberha, Eastern Cape; and 10 administrative posts.

Ford Motor Company of South Africa has confirmed the layoff plan and stated in a statement that the company is making necessary adjustments to the production operations of the two plants mentioned above. The company added, "These adjustments are measures we are taking to continuously optimize production and respond to the constantly changing market demands."

Willie Venter, Deputy Secretary General of the South African Solidarity Union, pointed out that economic pressure, international political uncertainty, and unfavorable policies introduced by the South African government are increasingly undermining the competitiveness of the country's automotive industry.

Willie Venter said, "When an automotive giant like Ford takes such drastic measures, it serves as a warning to the entire South African automotive industry. We are concerned that if the situation does not improve rapidly, further layoffs in the industry may be inevitable. If the South African government does not take strong intervention measures and implement economic reforms, South Africa will have to endure more job losses."

It is reported that the South African automotive industry directly employs 115,000 people, with more than 80,000 working in the auto parts manufacturing sector alone. Earlier this month, South Africa’s Minister of Trade, Industry and Competition, Parks Tau, revealed that due to sluggish domestic sales of locally produced vehicles, a large influx of imported cars, and insufficient localization rates, the South African automotive and auto parts industry has faced a severe situation over the past two years, with 12 companies shutting down and more than 4,000 jobs lost.

The CEO of Toyota South Africa told Reuters this month that seven major automakers with plants in South Africa, including Ford, Volkswagen, and Mercedes, have submitted a policy proposal to Parks Tau on how to support and protect the local automotive industry.