Ford Southern Africa is set to retrench more than 470 workers as the country’s struggling auto sector battles falling demand and a surge in imports. The automaker announced that the job cuts are a necessary response to changing market conditions, with at least 391 assembly workers at Ford’s Silverton plant in Tshwane and 73 at the Struandale engine plant in Gqeberha expected to lose their jobs. An additional 10 administrative roles are also under threat.
The South African auto industry, which accounts for about 5-5.3% of GDP and employs around 115,000 people directly, is facing a perfect storm. Imports are flooding the market, undercutting local manufacturers on price and eroding demand for domestically produced vehicles. Meanwhile, export demand is also under pressure due to global economic challenges and trade disruptions.
Ford’s Silverton plant, where the popular Ranger bakkie is assembled, is operating well below its 200,000-unit capacity. Despite the US parent company’s recent R16 billion investment in the latest Ranger model in 2022, local production remains constrained by low demand.
The Solidarity trade union confirmed that Ford is currently consulting on these proposed job losses and that some workers might be offered voluntary retrenchment packages. The company emphasized that it is engaging with unions to manage the process.
This announcement follows other major layoffs in the sector, including Mercedes-Benz’s plan to cut 700 jobs at its East London plant and Goodyear’s decision to close its Eastern Cape tyre factory, which will result in 750 job losses. The crisis in South Africa’s auto industry reflects broader economic pressures, global demand shifts, and increasing competition from imports, threatening thousands of jobs across the supply chain.
As the sector faces mounting challenges, many workers and communities are bracing for more difficult times ahead.