American Ford Motor Company legacy and continued investment in South Africa

by AI DeepSeek
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By Kagiso Bonoko

Ford Motor Company (commonly known as Ford) is an American multinational car manufacturer headquartered in Dearborn, Michigan, USA. Founded by Henry Ford and founded on June 16, 1903, Ford played a pivotal role in shaping the South African automotive industry. Marking more than 100 years of commitment to local manufacturing, job creation and innovation, the country's long-standingly respected history dates back to the humble beginnings of 1923 when it founded its operations in South Africa and became the first international automotive company to promote the development of the local automotive industry.

For many years, Ford has continued to build on this legacy, with significant expansion and modernization to its manufacturing facilities. One of the most important milestones came in 2021 when Ford announced its biggest investment in South African history. This continues to be one of the most important decisions in the local auto industry. Based on Tshwane's special economy, the $1 billion investment (R15.8 billion) aimed at modernizing and expanding the Silverton business was a significant milestone for the South African automotive industry. It represents a bold step towards modernizing Ford South Africa's manufacturing operations, expanding production capacity and, most importantly, creating thousands of jobs for the South African workforce.

The highlight of this investment was the expansion of Ford's Silverton vehicle assembly plant in Pretoria, upgraded to accommodate production of an all-new Ford Ranger. The expansion brings the plant's annual installation capacity to 200,000 units, equivalent to 720 new vehicles rolling off the production line every day. In total, the investment generated 1,200 direct jobs, creating an estimated 10,000 additional jobs across Ford's supply network in South Africa.

In addition to creating employment opportunities and reducing local unemployment, the investment was aimed at raising Ford's South African business to global standards. This includes modernising key facilities, including the installation of advanced tools for suppliers and the introduction of automation to improve efficiency and vehicle quality. These enhancements not only made Ford South Africa competitive, but they also allowed them to compete with other Ford manufacturing plants around the world.

South Africa investment in Ford took another major leap when the company announced production of its Ford Ranger plug-in hybrid electric vehicle (PHEV) in November 2023, making it the first time a hybrid version of the Ford Ranger will be produced anywhere in the world. This milestone represents South Africa's commitment to producing new energy vehicles, strengthening the country's growing role in the global transition to cleaner and more sustainable vehicle production and actively contributing to its carbon footprint.

The Silverton plant currently holds the distinction as being the only facility in the world to produce plug-in hybrid versions of the Ford Ranger. This further highlights the importance of South Africa's contribution to Ford's global manufacturing network. Production of Ranger PHEVs began in early 2025, with vehicles exported to markets in Australia, New Zealand, the UK and Europe, along with the continued export of vehicles to over 100 countries around the world.

A major upgrade has been made to South Africa's manufacturing infrastructure as part of Ford's continued investment strategy. A new battery assembly plant is under construction at the Silverton facility, producing up to 62,000 battery packs per year. The facility is a key component of Ford's broader strategy to support the transition to electric vehicles and expand the capabilities of the electric vehicle sector.

In addition to upgrading physical infrastructure, Ford has invested heavily in workforce development. This includes training and high-end employees to operate and maintain cutting-edge equipment and ensure the highest standards of vehicle quality. As a result, Ford South Africa currently employs around 5,200 people across its operations, and the Silverton plant operates 24 hours a day in a three-shift pattern to meet growing demand.

Ford's success in South Africa would not have been possible without strong cooperation between the company and government at all levels, namely the national, local and local levels. One important initiative born out of this partnership is the Tshwane Automotive Economic Zone (Tazes), which aims to create a globally competitive manufacturing hub. The first phase of Tazes is already established, with a second phase in progress, consisting of over 100 hectares of land dedicated to developing manufacturing facilities to support Ford production.

Ford has played a key role as a founding partner and anchor tenant, serving as a benchmark for public-private partnerships in the automotive sector. Through this collaboration, Ford has helped strengthen local manufacturing, promote job creation, and integrate small and medium-sized businesses (SMEs) into their supply chain.

Ford has made great strides in South Africa, but challenges remain. The company must continue to address competitive pressures from other global automotive manufacturing hubs. These pressures come from other countries in Africa as well as established automotive regions around the world. It is essential that South Africa continues to improve its business environment, infrastructure and technical capabilities to remain competitive.

One of the key challenges facing South Africa today is the imposition of new tariffs by the Trump administration. These measures could lead to short-term disruption within the South African economy, but are unlikely to cause long-term instability. The economic relations between the US and South Africa remain important and mutually beneficial. No matter what size, countries play an important role in supporting their partner's trade and economic objectives. Therefore, sustainable cooperation is the greatest interest of both countries, highlighting the need for strong, balanced and resilient bilateral trade relations. It is evident in Ford's continued commitment to South Africa's automotive industry and long-term growth strategy and its investment decisions in its commitment to creating a sustainable and competitive manufacturing ecosystem.

The relationship between Ford Motor Company and South Africa is a testament to the power of long-term investment, innovation and collaboration. The company's contribution to South Africa's economy through job creation, infrastructure development and modernisation of manufacturing operations has helped establish the country as a key player in the global automotive industry.

As Ford continues to expand its operations and embrace the future of electric vehicle production, its role in South Africa's industrial transformation is poised to grow even further. The company remains committed to ensuring South Africa remains competitive in the global automotive market, securing the country's location as its main manufacturing hub for years to come.

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