Automobile giant slashes 500 jobs in South Africa as UK tax policy hits sales

Ford Motors has confirmed it will cut nearly 500 jobs at its South African plants, citing weakening European demand for its Ranger pickup and the impact of international tax changes that have unsettled its export markets.

• Ford is retrenching 474 workers across its Silverton (Pretoria) and Struandale (Gqeberha) plants due to weak demand in Europe.
• UK tax changes on double-cab pickups and poor sales of the plug-in hybrid Ranger have hit exports.
• Union Solidarity warns the cuts may signal broader job losses in South Africa’s automotive industry.
• Ford says local demand remains steady, but production has been reduced from three shifts to two.

The retrenchments, announced after a formal notice was issued to unions in August, will result in the scrapping of 391 operator roles at Ford’s Silverton assembly plant in Pretoria, 73 positions at its Struandale engine facility in Gqeberha, and 10 administrative jobs.

The company stated that the move is part of a “realignment” of production capacity in response to subdued global sales.

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

“We understand the impact this has on our valued employees, and we are committed to supporting those affected. As part of this process, we will be offering voluntary separation options,” Ford said in a statement.

Union fears ripple effect across automotive sector

Trade union Solidarity has raised concerns that Ford’s decision could be the start of a broader crisis in South Africa’s automotive industry, which is heavily reliant on exports.

“We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” warned Willie Venter, deputy general secretary of Solidarity.

He argued that international uncertainty, economic pressures, and unfavourable local policies are eroding the industry’s competitiveness.

The union said it would engage Ford through consultation processes to interrogate what it described as a “drastic reduction” in vehicle sales.

European tax policy disrupts Ranger sales

Ford executives have attributed the slump to two key factors: weaker-than-expected demand for the plug-in hybrid Ranger, and changes in UK tax policy.

From April 2025, double-cab pickups with a payload of one tonne or more have been reclassified for tax purposes as passenger cars, rather than commercial vans, which significantly increases ownership costs.

“In the UK, this tax change has unfortunately reduced volumes. It’s had a big impact in terms of our European orders,” explained Neale Hill, President of Ford Motor Company Africa.

He added that the company’s plug-in hybrid Ranger has underperformed in international markets.

“We haven’t seen the plug-in hybrid Ranger hit the volumes that we’ve been looking for. It’s an expensive vehicle, plus we are not getting to the European originating content, which then makes it able to go into Europe duty-free.”

Local market steady, but production cut back

Despite difficulties abroad, Hill noted that South African demand for the Ranger remains stable and even shows “slight growth.” However, production has been scaled back, with operations reduced from three shifts to two.

Ford’s Silverton plant has the capacity to produce 200,000 vehicles annually, but utilisation is expected to fall well below that level.

“Currently, this year will be about 100,000, and the installed capacity at capable volume is 140,000. That’s what we’ll keep going forward,” Hill confirmed.

Although Ford South Africa stressed that its operations are not affected by US tariffs on automotive imports, since it does not export to the US, the company conceded that global market volatility is reshaping its future production strategy.

The retrenchments add to growing concerns about job security in South Africa’s manufacturing sector, where the automotive industry remains a cornerstone employer and a significant exporter.