The recent seven-week-long strike in South Africa’s automotive industry has managed to “dramatically increase” awareness of this business in the country, says Ford Motor Company (FMC) CEO Alan Mulally.
He notes that Ford is talking to everyone involved in the local automotive industry, from trade unions to component manufacturers and government, to ensure that the local arm of the US carmaker can, every year, improve its productivity and reliability, as well as the quality of its products.
“We have, up to now, been doing this. The most important thing in South Africa for Ford is to continue doing this every year. Reliability is very important. All stakeholders must understand this. We export to 148 countries from South Africa.”
He adds that Ford remains committed to its business in South Africa.
Mulally says Ford is not currently planning on opening any other plants in Africa.
“Our priority is to utilise our capabilities in South Africa to the fullest extent possible.”
Mulally, who spent 37 years at Boeing before moving to Ford, and currently serves on US President Barack Obama’s export council, says there is a growing emphasis on the manufacturing industry on a global level.
“I think everywhere in the world the importance of manufacturing is moving up. There is a reason why in every country 70% of all research and development is associated with manufacturing. It is really being appreciated as a source of wealth.”
He says manufacturing is viewed as the foundation for economic development.
“Everybody – everybody – wants to partici- pate in manufacturing.”
Mulally says the role of government is to create an environment where private business can thrive. He also emphasises the need for public–private partnerships in order for private business to succeed.
Ford’s local business unit, the Ford Motor Company of Southern Africa (FMCSA), produces the Ranger bakkie at its Silverton plant, in Pretoria, and engines parts at a plant in Port Elizabeth.
New Middle East, Africa Unit
Ford expects to benefit significantly from the formation of a new sales unit, grouping its Middle East and Africa operations under one umbrella, says Mulally.
Prior to this move, North Africa reported to Europe, and Southern Africa to Asia.
Mulally says the reorganisation will place emphasises on this new “growth region” in the world.
He adds that Ford finally has all the right vehicles at the right price points to support its business in Africa.
“Structurally, we were not set up to grow in the region, but set up to serve the region,” adds FMC Middle East and Africa president Jim Benintende.
He says Ford is currently developing a business strategy for the region, something which has not been done before.
“We have not yet tapped the potential of this market.”
South Africa and Saudi Arabia currently represent the biggest markets within the new sales region, adds Benintende.
FMCSA sold 47 000 vehicles in South Africa in 2012.