http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.00Change: 0.01
R/$ = 10.66Change: -0.03
Au 1286.80 $/ozChange: -0.70
Pt 1424.00 $/ozChange: -2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 03, 2009

Ford production to drop by 50%, SA market turnaround to be slow – Feder

Back
Port|Port Elizabeth|Pretoria|Africa|Bank Of Obama|Chrysler|Components|Diesel|FMCSA|Ford Motor Company|General Motors|Motors|Volkswagen|Africa|South Africa|Thailand|United States|Silverton Plant|Automotive|Equipment|Manufacturing|Motors|Barack Obama|Hal Feder|Motors|Motors|Puma|R1|Diesel
Port||Africa|Components|Diesel|Motors||Africa|||Automotive|Equipment|Motors|Motors|Motors||
port|port-elizabeth|pretoria|africa-company|bank-of-obama|chrysler|components|diesel-company|fmcsa|ford-motor-company|general-motors|motors-company|volkswagen|africa|south-africa|thailand|united-states|silverton-plant|automotive|equipment|manufacturing|motors-industry-term|barack-obama|hal-feder|motors-person|motors|puma|r1|diesel
© Reuse this



Ford Motor Company of Southern Africa (FMCSA) will produce 28 000 units at its Silverton plant, in Pretoria, this year, compared with 55 000 units last year, says president and CEO Hal Feder.

Similar to all other vehicle manufacturers in South Africa, Ford has been forced to cut back production in the face of sharply declining demand.

Feder says Ford production is down 40% for the domestic market, and 60% for the export market.

FMCSA manufactures the Focus for the Australian market.

“We'll export 8 500 units this year,” notes Feder.

FMCSA has trimmed its staff component to adjust to a much smaller automotive market, with 1 300 people leaving the company's employment in a voluntary retrenchment programme since August last year.

This number includes hourly and salaried staff, in Silverton and in Port Elizabeth, where the company has an engine manufacturing plant, explains Feder.

FMCSA currently employs 2 700 people.

“We have taken out R720-million in inventory costs since the beginning of the year, from components to finished goods,” adds Feder.

He expects the local market to reach its bottom somewhere in the next six months, and to then climb gradually.

“I think it will be a slower climb than we all want, and it all depends on global economic trends.

“I hope to see some growth, maybe around 5%, over the next year.”

Feder anticipates a local market of 380 000 to 390 000 new vehicle sales this year.

He says Ford is placed fourth in terms of market share in South Africa, its slice of the pie for the first six months of the year growing by 0,4% compare with 2008. The only other top five brand which has gained market share in 2009 is Volkswagen.

Feder also notes that FMCSA's R1,5-billion investment programme in the local production of a new generation pick-up, at a volume of 90 000 units a year, as well as the Puma diesel engine, is “under review, but still on track”.

Engine production is scheduled to start in 2010, and vehicle production in 2011.

“We are proceeding through the gateways. We're also looking at localising as much of the parts as we can,” says Feder.

He says FMCSA is talking to “four big potential investors” to establish operations in South Africa for the vehicle and engine production programmes.

“They are new suppliers, and it looks as if two of the four may partner with existing local  [component] suppliers.”

Feder says South African vehicle manufacturers are working hard at the localisation of parts, as this will render the local manufacturing base more competitive compared with other countries.

“We are partners in the plant – there is a lot of cooperation between original equipment manufacturers – but competitors in the showroom.

“The local industry, through the  National Association of Automobile Manufacturers of South Africa, is working more collaboratively than ever before.

“The aim is to keep manufacturing vehicles here, in South Africa. Yes, we compete in terms of sales, but when it comes to manufacturing, Ford in South Africa competes with Ford in Thailand to secure manufacturing contracts.”

As regarding Ford's economic viability, Feder says the US vehicle manufacturer is “staying away from the Bank of Obama” – referring to US president Barack Obama.

Both Chrysler and General Motors earlier this year accepted a federal bailout in an attempt to return to financial viability.

Ford managed to cut costs and gain US market share in the second quarter of the year.

“Our liquidity is good,” says Feder. “We have over $20-billion cash on hand.”

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 3 minutes ago Statistics released by the Department of Trade and Industry on Monday, showed that August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37...
Updated 4 hours ago E-tolls in Gauteng will cripple South Africa's economy, the Justice Project South Africa (JPSA) said on Monday. "This will cripple the economy of Gauteng and indeed South Africa as a whole," JPSA chairperson Howard Dembovsky told public hearings in Midrand on the...
Updated 5 hours ago In its first appointment of a female to head up the continent’s biggest and busiest airport, Airports Company South Africa (ACSA) has named Bongiwe Pityi as the new GM of OR Tambo International Airport, with effect from September 1. An attorney of the High Court of...
More
 
 
Latest News
Updated 4 minutes ago Statistics released by the Department of Trade and Industry on Monday, showed that August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37...
Updated 4 minutes ago The 14 350 km Sat-3/Wasc/Safe cable system connecting Europe to the west coast of Africa has been successfully upgraded, doubling the system capacity. The fourth upgrade, undertaken by Alcatel-Lucent and the Sat-3/Wasc/Safe consortium, which includes Telkom, had seen...
Telkom CEO Sipho Maseko
Updated 42 minutes ago As telecommunications group Telkom continued the turnaround that raised its share price from R11 a few years ago to the current R55 a share, the previously beleaguered group aimed to play a significant role in the provision of broadband to all South Africans....
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks