• Ford Motor plans to cut over 470 jobs at its Silverton and Struandale plants, approximately 9% of its South African workforce.

• Naamsa data show that imports surged 25% in early 2025, while sales of locally built vehicles fell 14%, putting pressure on local production.

• Ford says it will continue with its R15.8 bn Silverton upgrade and Ranger PHEV rollout, despite near-term capacity reductions.

Ford Motor Company of Southern Africa has initiated a Section 189 consultation process that could result in the loss of more than 470 jobs across its South African operations. The potential cuts include 391 operator positions at the Silverton Assembly Plant in Pretoria, 73 operator roles at the Struandale Engine Plant in Gqeberha, and around 10 support staff jobs. With about 5,200 employees on its payroll in South Africa, the move represents a reduction of roughly nine percent of the company’s local workforce.

The cuts come against the backdrop of significant import growth and falling sales of locally manufactured vehicles. According to Naamsa data, light-vehicle imports rose 25.6 percent among OEMs during the first five months of 2025, while independent importers brought in 33.4 percent more vehicles over the same period. At the same time, domestic sales of cars built in South Africa fell by 14 percent, underlining the pressure on local plants. Imports remain dominated by India and China, which together accounted for nearly three-quarters of the vehicles brought into South Africa in 2024.

Currency movements have also added to the strain. Since the start of the year, the rand has appreciated by about six percent against the US dollar, strengthening from around R18.75/$ in early January to approximately R17.7/$ by late August. While a stronger rand benefits consumers buying imports by making them cheaper in local currency terms, it has increased competitive pressure on locally assembled models by narrowing price differentials in the market.

Ford insists the restructuring does not signal an exit from South Africa. The company is continuing with its R15.8 billion modernisation programme at Silverton, which underpins the next generation of the Ranger pickup. It has also begun production of the plug-in hybrid version of the Ranger at Silverton, with deliveries already underway in Europe. Looking further ahead, Ford has announced plans for a new midsize fully electric pickup to be launched globally in 202. Still, it has not confirmed whether this model will be built in South Africa or whether it will carry the Ranger badge.

The announcement has sparked concern among organised labour. Solidarity, which represents a portion of Ford’s workforce, has warned that the retrenchments could mark the beginning of deeper cutbacks if conditions do not improve. The government has also taken note. Parks Tau, who has served as Minister of Trade, Industry, and Competition since July 2024, has been engaging with automakers on ways to cushion the sector from rising imports, weak local demand, and pressure to increase localisation. While he has promised urgent consultations with stakeholders, no firm measure, such as tariffs or quotas, has been announced.

For Ford’s workforce, the outlook remains uncertain. The company has stated that it aims to achieve the reduction through voluntary separation packages, redeployment, and early retirement, rather than forced retrenchments. But as workers streamed out of Silverton on Thursday, some already holding redundancy forms in their hands, the sense of unease was unmistakable. 

In sum, the threatened loss of 470 jobs is real and confirmed by both Ford and union representatives. The Naamsa figures support the picture of a market tilted by rising imports and declining domestic sales. At the same time, the currency shift—correctly read as a strengthening of the rand—has further sharpened competition. Ford’s investment commitments, including the Silverton upgrade and the Ranger plug-in hybrid programme, remain intact. But whether these longer-term strategies can outweigh the short-term market pressures remains an open question.

Idriss Linge