Ford South Africa to lay off over 470 workers in car and engine plants

By Nqobile Dludla

JOHANNESBURG, Aug 28 (Reuters) - Ford Motor's F.N South African unit plans to lay off more than 470 employees as it seeks to adjust production capacity to match current and future market demands, the South African Solidarity union said on Thursday.

Ford has sent an official notice to the union and others, notifying them of its intention, Solidarity said in a statement.

The jobs affected are 391 operator positions in Silverton car assembly plant in Pretoria, 73 at Struandale engine plant in Gqeberha and 10 administrative roles, the union said.

Ford Motor Company of Southern Africa confirmed the layoffs, saying in a statement that it was making necessary adjustments to its manufacturing operations in both plants.

"These changes are part of our ongoing efforts to optimise production and respond to evolving market demands," Ford added.

Economic pressures, international political uncertainties, and the government's unfavourable policies are making the industry increasingly less competitive, Willie Venter, deputy general secretary of Solidarity said.

"When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry. We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly," Venter said.

"Without serious intervention and economic reform from our government, our country will have to endure even more job losses."

South Africa's automotive industry employs 115,000 people directly, with over 80,000 in component manufacturing alone. Low domestic sales of locally made cars, an influx of imports and low levels of local content have led to 12 company closures and over 4,000 job losses in the South African motor and parts industry over two years, the trade minister said earlier this month.

Toyota South Africa's CEO told Reuters this month that the big seven car companies manufacturing in South Africa including Ford, Volkswagen VOWG.DE and Mercedes-Benz MBGn.DE, have sent a policy recommendation document to the trade minister on how to support and protect the local industry.