Ford SA Announces Job Cuts in Gqeberha and Pretoria

Ford South Africa has confirmed plans to retrench more than 470 employees. This is part of a production realignment strategy aimed at adapting to shifting market conditions.

According to an official notice, the company intends to cut 73 operator roles and 10 administrative positions. These cuts are at its Struandale engine plant in Gqeberha. In addition, 391 jobs are set to be reduced at its Silverton vehicle assembly facility in Pretoria.

Union Raises Alarm

Trade union Solidarity, which represents many of the affected workers, expressed concern. They worry that the announcement could signal wider troubles for the country’s automotive sector.

“This marks the start of what could become broader job losses across the industry,” warned Willie Venter, Deputy General Secretary of Solidarity.

He pointed to mounting economic pressures, global political instability, and domestic policy challenges. These are key factors weakening the country’s competitiveness in the automotive space.

Venter cautioned that Ford’s move should be seen as a warning sign.

“When a global automotive giant takes such drastic steps, it highlights the scale of the challenges facing the sector. If conditions do not improve, further retrenchments may be unavoidable,” he said.

What’s Next for Ford South Africa?

Despite the retrenchments, Ford South Africa confirmed that its Silverton plant will continue producing the next-generation Ford Ranger. This is one of the brand’s most important global models. Production realignment, the company said, is aimed at streamlining operations and ensuring the plant remains competitive amid shifting global demand.

However, analysts note that the retrenchments could slow output in the short term as Ford restructures its operations. Reduced manpower may affect production volumes, though Ford is expected to prioritise efficiency and automation to meet global supply commitments.

Impact on Employees and the Industry

The retrenchments come at a time when South Africa’s automotive sector faces high logistics costs, power cuts, and increasing competition from markets such as Morocco. The loss of over 470 jobs will not only impact affected families. It will also ripple into local economies around Pretoria and Gqeberha, where Ford’s plants are key employers.

The industry faces a delicate balance. Global manufacturers are under pressure to modernize and reduce costs. Meanwhile, local operations must remain viable to secure long-term investment.

Ways to Support Retrenched Workers

Solidarity has confirmed it will participate in the consultation process under the Commission for Conciliation, Mediation and Arbitration (CCMA). They have pledged full backing to its members throughout the proceedings.

Labour experts say retrenched employees could benefit from:

• Reskilling and upskilling programmes to prepare them for roles in other sectors, including renewable energy and logistics.
• Government support initiatives, such as unemployment insurance, job placement services, and retraining subsidies.
• Collaboration with local businesses, particularly in manufacturing and services, to create new opportunities for those displaced.
• Mental health and counselling services to help workers and their families navigate the emotional toll of job losses.

Recent Layoffs Across the Industry

Ford’s retrenchments are part of a worrying trend across the sector:

• Mercedes-Benz South Africa reduced shifts and trimmed staff at its East London plant. This was after U.S. tariffs and sluggish export demand hit viability.
• BMW has also scaled back hiring at its Rosslyn facility amid local content challenges and rising costs.
• Auto component firms have closed 12 businesses in the past two years. This has contributed to the 4,000+ job losses cited by Trade Minister Parks Tau.
• International OEMs such as Stellantis and Chery have delayed local investments. However, Stellantis still plans a new Eastern Cape facility in future.
• ArcelorMittal South Africa, though a steelmaker rather than vehicle assembler, is a key supplier to the industry. It has announced possible shutdown of its Newcastle and Vereeniging long steel plants. This puts about 3,500 jobs at risk and threatens auto-component supply chains.

A Sector at a Crossroads

Ford’s retrenchments highlight broader concerns about the future of South Africa’s automotive industry. While production of flagship vehicles like the Ranger will continue, the sector faces stiff competition and structural challenges.

How the government, industry, and unions respond to this crisis could determine whether the country remains a hub for global car manufacturing. Alternatively, it risks losing further ground to international rivals.

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