Ford to cut 470 jobs even as imports from India, China surge

Ford Motor Company of Southern Africa is planning to lay off more than 470 employees across two key manufacturing sites as imports from India and China continue to climb—a strategic readjustment aimed at aligning production with evolving market realities. The development was disclosed in an official notice to labour groups, confirmed by union Solidarity and reported by Reuters on 28 August.

According to the Solidarity union, the job reduction will strike across both the Silverton assembly plant in Pretoria—where 391 operator positions will be affected—and the Struandale engine plant in Gqeberha, impacting 73 roles. Additionally, 10 administrative staff jobs will be eliminated. In total, the retrenchment will affect more than 470 personnel.

A spokesman for Ford confirmed the move, stating that it forms part of "ongoing efforts to optimise production and respond to evolving market demands."

South Africa’s automotive sector is confronting mounting pressures. Trade Minister Parks Tau recently noted that low domestic sales, a deluge of imported vehicles, and stagnant local content levels have already led to 12 plant closures and over 4,000 job losses in the past two years. Imports now account for 64 per cent of vehicles sold, while local content remains at just 39 per cent—far below the 60 per cent target.

Solidarity’s Deputy General Secretary, Willie Venter, cautioned that Ford's announcement may signal the start of broader setbacks for the entire sector. "We see this as possibly the beginning of greater job losses facing the entire automotive industry in South Africa," he warned.

Imports from India and China

The retrenchments come at a time when imports of affordable cars from India and China have significantly increased. Industry data reveals that light vehicle imports rose by 25–33 per cent in early 2025, while local car sales dropped by 14 per cent—exposing South African manufacturers to heightened competition.

Despite the immediate job cuts, Ford is pushing ahead with long-term investments. The automaker is proceeding with a R15.8 billion (approximately US$1 billion) upgrade of its Silverton facility, including the ramp-up of the Ranger plug-in hybrid rollout and the development of a midsize electric pickup.

Furthermore, major carmakers—including Ford, Volkswagen, and Mercedes-Benz—have submitted proposals to the Trade Minister seeking policy support to stabilise the industry amid these mounting imports and economic headwinds.