http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.29Change: -0.09
R/$ = 11.70Change: -0.05
Au 1207.85 $/ozChange: 1.57
Pt 1174.50 $/ozChange: -1.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 02, 2012

SA labour disruptions cause for concern, says Ford Asia, Africa boss

Back
Engineering|Pretoria|Africa|FMCSA|Ford Motor Company|Ports|Africa|Europe|Australia|Brazil|China|India|South Africa|Thailand|United States|FMCSA Plant|Silverton Plant|Equipment|Product|Jeff Nemeth|Joe Hinrichs|Power|Ford Ranger|Ranger|Southern Africa
Engineering||Africa|Ports|Africa||||Equipment||Power||
engineering|pretoria|africa-company|fmcsa|ford-motor-company|ports|africa|europe|australia-country|brazil|china|india|south-africa|thailand|united-states|fmcsa-plant|silverton-plant|equipment|product|jeff-nemeth|joe-hinrichs|power|ford-ranger|ranger|southern-africa-region
© Reuse this



The last number of years had seen more labour disruptions to Ford’s business in South Africa than to any of the US manufacturer’s other global plants, said Ford Asia Pacific and Africa president Joe Hinrichs on Tuesday.

Speaking to Engineering News Online during his visit to Ford Motor Company of Southern Africa’s (FMCSA’s) Ranger plant, in Pretoria, he noted that the company was “concerned, from a global perspective”, about the labour unrest in South Africa.

“No one country is isolated. We use suppliers from all over the world. We all compete in a global marketplace. We have a 100 plants all over the world and we rarely have disruptions there. That happened 30 years, 40 years ago. I cannot remember the last time we had disruptions in the US, India, Brazil or China.”

Hinrichs added that labour costs in South Africa were rising faster than inflation, and that the economy was punctuated with frequent work stoppages, such as at the ports and, currently, in the transport industry.

“For South Africa to compete, it needs to take a higher perspective on what all of this means to the country. The labour economic growth rate and work stoppages do not measure up to a globally competitive scale.”

FMCSA’s plant produced and exported the new Ranger one-ton pick-up to 148 markets worldwide, Africa and Europe included, in a multibillion-rand investment completed last year.

“We just made a significant investment, and we are very excited about our product,” said Hinrichs. “Our near- to medium-term considerations are to build more Rangers. But, we have to be aware of longer-term considerations. Consumers will not pay extra because a vehicle was made outside the global competitiveness scale. The want value for money. They don’t care where the product was built.”

He added that he respected the process of wage negotiations, but found the work stoppages that accompanied it in South Africa “frustrating”.

“We have to have one foot in today, and one foot in tomorrow.”

NEW RANGER UPS LOCAL CONTENT, SALES
FMCSA’s Silverton plant had “made a lot of progress, a lot of advances in their processes. This is very encouraging”, noted Hinrichs on Tuesday.

He said uptake of the new Ford Ranger had been “outstanding”, with demand for the product surging.

While adding a second shift to the plant produced some answers to growing demand, parts suppliers were still lacking capacity, with Ford now co-investing to ensure increased output. This included buying tooling, for example, or providing equipment to produce certain high-end parts.

The old Ranger had a 10% share in the local one-ton pick-up market, with this growing to 18% year-to-date, noted FMCSA president and CEO Jeff Nemeth.

While the vehicle market was down in Europe, new Ranger demand was up compared with the old Ranger. Key pick-up markets such as Australia, Thailand and the Middle East were also up, and expected to remain strong next year, added Hinrichs.

In some quarters, Africa was expected to grow into the next big new car market, following on from Asia Pacific.

Hinrichs said the FMCSA plant was especially important in supplying one-ton pick-ups to the European market – which did not assemble the product – under a preferential agreement South Africa had with the continent.

“South Africa fits in nicely in this equation.”

Even more important in the numbers game, especially to those counting jobs at the Department of Trade and Industry, was that the new Ranger had 65% local content, including the power train, compared with 35% on the old Ranger.

“Where [Ford's] local buy was R1-billion a year, it is now R4-billion a year, and growing,” said Nemeth.

Hinrichs noted that capacity at the FMCSA plant could grow further should the need arise, through the addition of a third shift.

However, “right now, we have to increase production with the second shift we have added, and increase the supply base’s productivity”.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Updated 53 minutes ago A second full electric vehicle has entered the South African market, following the local debut of the Nissan Leaf in 2013. The BMW i3 BEV sells for R525 000, while the derivative with a range extender, the i3 REx, sells for R595 000.
Updated 1 hour 33 minutes ago Amid an ongoing delay in the promulgation of the Final Position Paper on Biofuels by the Department of Energy (DoE), prospective biodiesel producers have cautioned that continued legislative uncertainty could cripple the fledgling industry. The ‘Regulations regarding...
Updated 1 hour 53 minutes ago It is imperative for the local industry to strike a healthy balance between international competition and dumping, the Steel and Engineering Industries Federation of Southern Africa (Seifsa) has said. A flood of cheap imports; unfair competition from highly...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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 road...
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.
 
 
 
 
 
This Week's Magazine
The World Bank, the European Union, the African Development Bank (AfDB) and the government of Sweden have agreed to provide Zimbabwe and Zambia with $294-million for the repair of structural deformations on the Kariba dam wall and avert the possible collapse of the...
Global Electricity Initiative executive chairperson Philippe Joubert
Executive chairperson of the Global Electricity Initiative (GEI) Philippe Joubert says energy utilities globally, together with the business community more generally, have come to terms with the science of climate change, particularly as extreme weather events begin...
JAMES TEMPLETON Emira’s operational performance is the best it has been in a long time
JSE-listed Emira Property Fund reported distribution growth per participatory interest (PI) of 9% for the six months ended December 31, 2014.
JOAN MACNAUGHTON Many countries were also struggling to balance the energy trilemma of energy security, energy equity and environmental sustainability
Sub-Saharan Africa is still faced with the challenge of providing citizens access to electricity and an additional $450-billion will need to be invested to ensure that people in urban areas have access to electricity by 2040.
ABE THELA Cuban engineering skills are not recognised by the Engineering Council of South Africa
Consulting Engineers South Africa (Cesa) last month said it was dismayed that the Department of Water and Sanitation (DWS) was seconding 35 Cuban engineers on a two-year contract to share their expertise with South African engineers in the water sector.
 
 
Consulting firm Louis Berger Group was last month commissioned by the Sub-Saharan Regional Pipeline Corporation (SSRPC) to provide $7.6-million worth of consultancy services and rehabilitation of the National Road N303 in Mozambique.
The Democratic Alliance (DA) on Wednesday called for a fuel levy to pay for roads, instead of e-tolls, during a protest outside Gauteng Premier David Makhura's office. "We do want to pay for them [the roads] by a dedicated, ring-fenced national fuel levy," the...
Transport equipment manufacturer GE Transportation has appointed Thomas Konditi as the head of its sub-Saharan Africa division. Konditi, who would be based in Johannesburg, was most recently COO of GE Africa, in Nairobi. His responsibilities included the oversight of...
More
 
 
 
 
 
 
 
 
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 $96 Close
Subscribe Now for $96