Business sector welcomes Ford investment

Pretoria’s business sector hails R2.5bn investment by Ford Motor Company at Silverton assembly plant.

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Pretoria - The business sector in Pretoria yesterday hailed the R2.5 billion investment by the Ford Motor Company at its Silverton assembly plant, east of the city.

Ford announced the city’s second investment for the automotive industry in six months, which will enable it to expand operations at the plant.

The investment will yield about 1 200 new jobs at Ford South Africa, with the plant producing the new family car, Ford Everest.

The Ford Ranger will also be produced there.

Last November, BMW South Africa announced a R6bn injection, among the industry’s biggest yet in South Africa, towards its existing plant at Rosslyn. With the investment, the company will be able to produce the next generation of the BMW X3 in the city.

Premier David Makhura, in his 2015 State of the Province Address, named Pretoria - or the Northern Development Corridor - as the hub of the automotive sector, research, development, innovation and knowledge-based economy.

Fanie du Plessis, head of the Capital City Business Chamber, said the fact that Ford was extending its production was affording lots of opportunities not just for the car maker, but for businesses of Silverton and Pretoria in general.

“Silverton is close to Mamelodi and the investment will immediately open up opportunities, especially for people in the township. New investment means new growth,” Du Plessis told the Pretoria News.

The executive director of strategic development at the business chamber, Chrys Haitas, said the automotive industry in South Africa was the biggest on the continent.

Haitas said the sector was filled with skilled people, and it made sense there would be so much growth in the industry in South Africa.

Referring to the automotive industry strike of three years ago, Haitas said it was a good sign that Ford and BMW were investing in South Africa despite that disastrous and protracted strike.

“It shows the industry is healthy, and that it is stable, because stability is the key,” she added.

Jim Farley, Ford executive vice-president, said that by producing the Everest in South Africa, the company would be able to make the car more readily available and in a greater variety of models for customers throughout sub-Saharan Africa.

The car is currently being produced in Thailand and exported to South Africa.

The Silverton plant is one of three in the world that would be producing the Ford Everest.

The initial production of the car at Silverton will begin in the third quarter of this year, with the first units expected to hit the market in the fourth quarter.

The locally produced models will be sold in South Africa and sub-Saharan African countries.

“The investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa. It further reinforces South Africa’s position as a strategic export base for Ford Motor Company,” Farley said.

He added that the plant will be equipped to produce 10 000 Ford Everest units annually.

“The all-new Everest has been extremely well received since it was launched in September last year, with demand far outstripping supply,” said Jeff Nemeth, chief executive officer of Ford in the sub-Saharan Africa region.

Last year, Ford sold 78 471 passenger cars and light commercial vehicles in South Africa, the highest number on record.

The Ranger performed particularly well with an 18.1% increase in sales and had a total of 33 920 cars sold last year.

nomaswazi.nkosi@inl.co.za

PRETORIA NEWS