Ford invests R15.8 billion, creates jobs
The Ford Motor Company is making its biggest investment in the company’s 97-year history in South Africa, with an investment of $1.05 billion (about R15.8 billion) in its local manufacturing operations.
It is also one of the biggest automotive investments ever made in South Africa and will boost Ford’s production capability and create 1 200 new jobs.
“This development presents a perfect opportunity to use our country’s comparative and competitive advantages to accelerate industrialisation,” President Cyril Ramaphosa said at the Silverton assembly plant where the investment was announced.
“These advantages include a well-developed automotive industry, with advanced manufacturing capabilities, an appropriately skilled workforce and access to growing markets.”
Ford’s Silverton assembly plant in Pretoria is expected to generate revenue exceeding 1.1% of SA’s gross domestic product, with the annual installed capacity increasing from 168 000 to 200 000 vehicles – to support production of the all-new Ford Ranger bakkie as well as Volkswagen bakkies as part of the Ford-VW strategic alliance.
The creation of 1 200 incremental Ford jobs will increase the local workforce to 5 500 employees and add an estimated 10 000 new jobs across Ford’s local supplier network – bringing the total to 60 000.
The overall investment of R10.3 billion for extensive upgrades to the Silverton assembly plant will include a new body shop with the latest robotic technology and a new high-tech stamping plant to modernize and streamline the integrated manufacturing process.
Ford will also build new vehicle modification and training centres to ensure all employees have the required knowledge and skills to use the latest technology.
As part of its investment a new Ford-owned and operated chassis line in the Tshwane Automotive Special Economic Zone will be built.
“The extensive upgrades and new state-of-the-art manufacturing technologies will drive efficiencies across our entire South Africa operation – from sequenced delivery of parts direct to the assembly line, to increased vehicle production line speeds and precision of assembly to ensure the world-class quality that our customers expect,” said Andrea Cavallaro, director of operations at Ford’s International Markets Group.
The new investment adds to Ford’s Project Blue Oval renewable energy project to use 100% locally sourced renewable energy for all its manufacturing plants by 2035 and achieve carbon neutrality by 2050.