http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.15Change: -0.08
R/$ = 11.59Change: -0.02
Au 1262.75 $/ozChange: 3.45
Pt 1229.50 $/ozChange: 12.00
 
 
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 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|Transport|Jeff Nemeth|Joe Hinrichs|Power|Ford Ranger|Ranger|Southern Africa
Engineering||Africa|Ports|Africa||||Equipment|Transport|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|transport-industry-term|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 Transport & Logistics News
An Airbus A400M (with a Cessna Citation business jet in the foreground)
Updated 3 hours ago Yet further delays in the production and delivery schedules for the Airbus A400M military airlift and air-to-air refuelling aircraft have led to a major shake-up at Airbus Defence and Space, the Airbus Group company responsible for the aeroplane. The changes were...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
More
 
 
Latest News
Hulamin CEO Richard Jacob
Updated 11 minutes ago Richard Jacob will return as CEO of JSE-listed Hulamin following a medical leave of absence. Jacob took medical leave in July last year.
Updated 17 minutes ago Food affordability improved in nearly 75% of countries from September to November 2014, largely owing to a 2.8% decline in global food prices, which are forecast to fall further still. This is according to the results of the Economist Intelligence Unit’s (EIU’s)...
Gauteng Premier David Makhura and JSE CEO Nicky Newton-King after a meeting with JSE-listed companies on Friday
Updated 2 hours 7 minutes ago Gauteng Premier David Makhura has promised to outline a comprehensive energy plan in his upcoming State of the Province address, acknowledging that without direct interventions to bolster security of electricity supply the province’s industrialisation vision could be...
More
 
 
Recent Research Reports
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.
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.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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