http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.30Change: 0.00
R/$ = 14.18Change: 0.06
Au 1302.54 $/ozChange: 11.39
Pt 1084.50 $/ozChange: 8.50
 
 
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 Letters About 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|Africa|Components|Diesel|Export|Motors|Africa|Automotive|Equipment|Manufacturing|Motors|Motors|Motors|Operations|Diesel
Port|Africa|Components|Diesel|Export|Motors|Africa|Automotive|Equipment|Manufacturing|Motors|Motors|Motors|Operations|
port|africa-company|components|diesel-company|export|motors-company|africa|automotive|equipment|manufacturing|motors-industry-term|motors-person|motors|operations|diesel



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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
CAT EQUIPMENT Barloworld is the official dealer of CAT machinery in Southern Africa
Machinery and global brands distributor Barloworld Equipment group has invested $14-million in its equipment operations in the city of Kitwe, in Zambia.
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Automotive exports from South Africa increased by R35.8 billion – or 30.9% – to R151.5-billion, in 2015, up from the R115.7-billion recorded in 2014. The 2015 numbers mean that auto exports accounted for 14.6% of South Africa’s total export earnings, says National...
More
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $149 Close
Subscribe Now for $149