Ford to Cut Workforce by About 9% at Two South African Locations

Ford plans to cut more than 470 jobs at its two South African facilities, coinciding with a significant rise in car imports from India and China.

The American automotive company has officially informed labor organizations about its intent to lay off workers at the Silverton assembly plant in Pretoria and the Struandale engine plant in Gqeberha, situated in the Eastern Cape province, as noted by the labor union Solidarity in a Thursday email.

As per the company’s website, Ford has around 5,300 employees at these plants. The upcoming layoffs add to the challenges faced by an economy that is already experiencing one of the highest unemployment rates worldwide, which has been worsened by a 30% tariff on car exports to the U.S. The central bank has projected that these increased tariffs could result in a loss of roughly 100,000 jobs, with the automotive and agricultural sectors being particularly hard-hit.

“We interpret this announcement as potentially signaling a wave of larger job losses throughout the entire automotive sector in South Africa,” expressed Solidarity Deputy General-Secretary Willie Venter. “We are concerned that further layoffs in this industry may be inevitable unless conditions improve rapidly.”

Read: The impressive rise of Chinese SUVs in South Africa

In a follow-up email, Ford confirmed that it is modifying its operations at both plants.

“We regret that these essential plant adjustments will lead to a reduction of positions at both facilities,” Ford stated.

According to Toyota Motor Corp., the leading auto brand in the country, more than a third of the vehicles sold in South Africa are imported from India or China.

Read: Wage agreements in the motor sector surpassing inflation

This transition is primarily driven by the increased demand for more affordable vehicles. Earlier this month, Mahindra & Mahindra, the second-largest automaker in India by market value, expanded its assembly operations in South Africa, while Tata Motors, the largest Indian automaker by sales, joined forces with Motus Holdings to distribute its vehicles in the African nation.

Read: Impact of Trump’s tariffs

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