Ford retrenchments in South Africa tied to UK tax shift, lower volumes
The South African arm of Ford Motor has attributed the planned retrenchments to lower European orders for its Ranger pickup truck, driven by recent tax changes in the UK and sluggish export volumes for its plug-in hybrid Ranger model.
Last month Ford sent an official notice to unions, notifying them of its intention to retrench 474 workers at its Silverton car manufacturing plant in Pretoria and Struandale engine plant in Gqeberha.
Ford exclusively produces the plug-in hybrid Ranger for global exports, mainly Europe. It also produces the internal combustion engine Ranger for the local and export markets.
Neale Hill, president of Ford Motor Company Africa, told Reuters on the sidelines of an auto conference on Wednesday that the company has been forced to scale down, following a drop in demand for its Ranger.
In the UK, from the start of April 2025 double-cab pickups with a payload of one tonne or more have been reclassified as passenger cars rather than commercial vans for tax purposes, making them more expensive to own.
"As a consequence of that, people have unfortunately reduced their volume. So that's had a big impact in terms of our European orders," he said.
Adding to the pressure are the low volumes of Ford's plug-in hybrid Ranger.
"We haven't seen the plug-in hybrid Ranger hit the volumes that we've been looking for," Hill said. "It's an expensive vehicle, plus, we are not getting to the European originating content, which then makes it able to go into Europe duty-free."
Hill added that volume for South Africa is still stable and probably increasing slightly.
Ford's plant has a capacity of 200,000 vehicles annually but at the moment it is not utilizing all of it.
"Currently this year will be about 100,000 and the installed capacity at capable volume is 140,000. That's what we'll keep going forward," Hill said.
Article Enquiry
Email Article
Save Article
To advertise email advertising@creamermedia.co.za or click here
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
