Automotive giant Ford South Africa has issued formal notice of its intention to restructure operations, affecting 474 positions at its Silverton Assembly Plant in Pretoria and Struandale Engine Plant in Gqeberha.
The move forms part of what the company describes as a “realignment” of production capacity in response to current and projected market demand.
According to the retrenchment notice, 391 operator roles in Silverton will be cut, along with 73 at Struandale and 10 administrative positions.
“We regret that these essential plant adjustments will result in a reduction of positions across both facilities,” said Ford SA in a statement.
“We understand the impact this has on our valued employees, and we are committed to supporting those affected.”
The company noted that voluntary separation options will be made available to employees and consultations with unions, including Solidarity, are underway.
Not Linked to US Tariffs – But Industry Worries Mount
Ford SA clarified that the retrenchments are not related to the punitive tariffs recently imposed by the United States on South African vehicle exports, noting that its local operations do not export to the US.
However, trade union Solidarity warned that this restructuring may be an early warning sign for the broader auto industry, which is already reeling from a 55% drop in exports to the US due to new trade barriers.
“We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” said Willie Venter, deputy general secretary at Solidarity.
He cited economic pressures, geopolitical instability, and government policy failures as key factors undermining South Africa’s competitiveness.
Trump Tariffs Bite Deep into Vehicle Exports
South Africa’s automotive exports to the US have been severely impacted by a series of tariffs introduced by the Donald Trump administration in 2025, including:
- A 25% vehicle tariff (announced in April)
- An earlier 10% universal tariff
- A further 30% penalty tariff in August, bringing the total to 55%
As a result:
- Vehicle and parts exports to the US dropped by 55% year-on-year
- Exports plunged from R17.7 billion in 2024 to just R8 billion so far in 2025
In 2024, vehicle exports made up 15% of South Africa’s exports to the US.
The steep decline is already leading to business closures in the supply chain and fears of further retrenchments.
Economists: Sectoral Damage Could Be Severe
While only about 8% of South Africa’s overall exports go to the United States, targeted industries like automotive and agriculture are expected to bear the brunt of the trade fallout.
The Ford retrenchments, although not directly caused by tariffs, underscore the vulnerability of the local manufacturing base to both global and domestic economic pressures.
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