http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 18.08Change: 0.04
R/$ = 16.01Change: 0.01
Au 1191.25 $/ozChange: -4.20
Pt 927.50 $/ozChange: -9.00
 
 
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 About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 02, 2012

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

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

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 Automotive News
 
Latest News
Updated 25 minutes ago A very serious structural problem is playing itself out in China and not merely a reorienting to consumption-led economy, says Council on Global Enterprise and Emerging Markets director Dr Harry Broadman. Broadman, who delivered the second keynote address at the 2016...
Updated 37 minutes ago The use of an SMS that directs Gauteng e-toll users to pay outstanding fees is illegal, said the Organisation Undoing Tax Abuse (Outa) on Wednesday. Outa, which changed its name from Opposition to Urban Tolling Alliance recently, said it needed the public to...
While international companies are keen to invest in South Africa, they are unable to meet the conditions of employment that have been extended to non-parties, forming part of a myriad of reasons why the the Free Market Foundation (FMF) is challenging the current...
More
 
 
Recent Research Reports
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...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
Updated 36 minutes ago The use of an SMS that directs Gauteng e-toll users to pay outstanding fees is illegal, said the Organisation Undoing Tax Abuse (Outa) on Wednesday. Outa, which changed its name from Opposition to Urban Tolling Alliance recently, said it needed the public to...
Much Asphalt has completed the acquisition of SprayPave, following Competition Commission approval for the transaction, says Much Asphalt MD Bennie Greyling. Much Asphalt is South Africa’s largest manufacturer of asphalt products. The company’s acquisition of...
The Roads Agency Limpopo's CEO has been dismissed and two of his colleagues suspended for alleged fraud, corruption, and collusion involving more than R40-million, the agency said on Monday. The trio allegedly flouted supply chain management policies, colluded,...
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 $149 Close
Subscribe Now for $149