Ford may cut about 9% of jobs at two South African plants

4 days ago 1

Ford plans to cut more than 470 jobs at two plants in South Africa, just as imports of cars from India and China jump.

The US carmaker has sent an official notice to labour groups announcing its intention to lay off workers at its Silverton assembly plant in Pretoria and the Struandale engine plant in Gqeberha in the Eastern Cape province, labour union Solidarity said in an emailed statement on Thursday.

Ford has about 5 300 workers in the two plants, according to data on the company’s website. The job cuts are another blow to an economy that has one of the highest unemployment rates in the world, and whose exports, including cars, are subject to a 30% tariff in the US. The central bank estimates the increased levies may cost about 100 000 jobs, with the automotive and agricultural industries most vulnerable.

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“We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” Solidarity Deputy General-Secretary Willie Venter said. “We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly.”

Read: The stunning rise of Chinese SUVs in South Africa

Ford is adjusting its operations at the two plants, the company said in an emailed statement.

“We regret that these essential plant adjustments will result in a reduction of positions across both facilities,” Ford said.

More than a third of the vehicles sold in South Africa are exported from India or China, according to Toyota Motor Corp., South Africa’s most popular auto brand.

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Read: Above-inflation motor sector wage deal

That’s because of the rising demand for more affordable cars. Mahindra & Mahindra, India’s second-largest carmaker by value, earlier this month expanded its assembly plant in South Africa, while Tata Motors, India’s largest automaker by sales, has tied up with Motus Holdings to distribute its vehicles in the African nation.

Read: Where Trump’s tariffs will hurt most

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