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Ford has announced a massive local investment to both its Pretoria and Port Elizabeth plants.
The R3bn investment will see the company’s local operations significantly ramped up in terms of production capacity and sophistication, positioning Ford South Africa as a major player within the brand’s global operations.
In quantitative terms the R3bn figure is double the amount initially set out for local production investment in 2008.
This bold investment by Ford shows both a discernable level of confidence in the South African economy and the brand globally. Ford managed to see itself through a tumultuous last 20 months without US government assistance.
New bakkie, plenty of engines
Ford’s assembly plant in Silverton, Pretoria, will benefit from the new investment to enable it to produce the company’s new compact bakkie by 2011, at a rate of 110 000 units per annum. Nearly 75% of these bakkies will be flagged for export.
The other half of Ford’s R3bn investment rolls over to the engine production plant in Port Elizabeth.
Production capacity at Ford’s Stuandale engine plant with benefit massively from the cash injection in terms of retooling, ensuring the plant operates Ford's latest industrial engineering systems.
A target of 220 000 machined components are to be produced annually at Stuandale when the new line is fully up and running, of which 75 000 will be retained for local use with the balance exported.
Stuandale will start producing Ford’s next generation Puma diesel engines early in 2011, joining the current RoCam production on site.
Local content skyrockets
Perhaps the most significant consequence of Ford’s R3bn local investment is in terms of local content supply stimulation.
Working with around 66 different South African suppliers, Ford is aiming to swell its local content sourcing from 35% to upwards of 60% when the new facilities roll over to their new production responsibilities.
In monetary terms Ford estimates its annual spending on local components will grow by R2bn each year, levelling off at a figure of R6.5bn.
"This announcement highlights our commitment to expanding the South African automotive industry, which will enhance the country as an export base for vehicles, engines and components” said Ford’s local boss, Jeff Nemeth. "It ensures that Ford maintains a viable and strategic presence in Southern Africa."
The R3bn investment will see the company’s local operations significantly ramped up in terms of production capacity and sophistication, positioning Ford South Africa as a major player within the brand’s global operations.
In quantitative terms the R3bn figure is double the amount initially set out for local production investment in 2008.
This bold investment by Ford shows both a discernable level of confidence in the South African economy and the brand globally. Ford managed to see itself through a tumultuous last 20 months without US government assistance.
New bakkie, plenty of engines
Ford’s assembly plant in Silverton, Pretoria, will benefit from the new investment to enable it to produce the company’s new compact bakkie by 2011, at a rate of 110 000 units per annum. Nearly 75% of these bakkies will be flagged for export.
The other half of Ford’s R3bn investment rolls over to the engine production plant in Port Elizabeth.
Production capacity at Ford’s Stuandale engine plant with benefit massively from the cash injection in terms of retooling, ensuring the plant operates Ford's latest industrial engineering systems.
A target of 220 000 machined components are to be produced annually at Stuandale when the new line is fully up and running, of which 75 000 will be retained for local use with the balance exported.
Stuandale will start producing Ford’s next generation Puma diesel engines early in 2011, joining the current RoCam production on site.
Local content skyrockets
Perhaps the most significant consequence of Ford’s R3bn local investment is in terms of local content supply stimulation.
Working with around 66 different South African suppliers, Ford is aiming to swell its local content sourcing from 35% to upwards of 60% when the new facilities roll over to their new production responsibilities.
In monetary terms Ford estimates its annual spending on local components will grow by R2bn each year, levelling off at a figure of R6.5bn.
"This announcement highlights our commitment to expanding the South African automotive industry, which will enhance the country as an export base for vehicles, engines and components” said Ford’s local boss, Jeff Nemeth. "It ensures that Ford maintains a viable and strategic presence in Southern Africa."
