Ford South Africa to Retrench Nearly 500 Workers Amid UK Tax Changes and Slumping European Demand for Ranger Bakkie
Ford South Africa has announced plans to cut nearly 500 jobs at its manufacturing plants in Silverton, Pretoria, and Struandale, Gqeberha, citing a sharp decline in European orders for its popular Ranger bakkie.
The retrenchments, affecting 474 employees, come as the company grapples with new UK tax rules that make double-cab pickups more expensive and weaker-than-expected demand for its plug-in hybrid Ranger model. While local sales remain stable, the export slump has forced production cuts at facilities operating below their 200,000-unit annual capacity.
Unions like NUMSA have voiced deep concerns over the impact on workers, calling for urgent talks to explore alternatives.
This development highlights broader challenges in South Africa’s automotive sector, where global market shifts and economic pressures continue to threaten jobs. As Ford navigates these headwinds, the retrenchments could ripple through supply chains and local economies in Gauteng and the Eastern Cape. Here’s a detailed look at the situation, including the reasons behind the cuts and responses from stakeholders.
Background: Ford’s Operations in South Africa and the Ranger’s Role
Ford South Africa, a key player in the country’s automotive industry, employs thousands at its Silverton and Struandale plants, where the Ranger bakkie is primarily produced for both domestic and export markets. The Ranger, a top-selling double-cab pickup, has been a flagship product since Ford invested R15.8 billion in 2021 to boost production for exports, particularly to Europe and the UK. This investment aimed to position South Africa as a global hub for the model, creating jobs and driving economic growth.
However, the company announced the retrenchments on 2 October 2025, affecting 474 workers – 391 operators at Silverton, 73 at Struandale, and 10 administrative staff. The cuts follow a similar announcement in August 2025, though the latest is tied to specific market pressures. Ford employs about 5,500 people in South Africa, making this a significant blow to the workforce.
Reasons for the Retrenchments: UK Tax Hikes and Hybrid Demand Slump
The primary driver is a sharp drop in European demand for the Ranger, exacerbated by tax changes in the UK – a key market for the bakkie. From April 2025, double-cab pickups like the Ranger will be taxed as passenger vehicles in the UK, ending their previous classification as commercial vans with lower taxes. This makes them pricier for buyers, leading to lower orders and forcing Ford to scale back production.
Adding to the woes is the underwhelming sales of the plug-in hybrid Ranger, built in SA for export mainly to Europe. Launched amid Europe’s green push, the model has not met sales expectations, further hitting export volumes.
Locally, Ranger demand holds steady, but the plants are running below capacity, prompting the need to adjust staffing. Ford says these factors have made the cuts unavoidable to stay competitive.
Impact on Workers: Job Losses and Union Concerns
The retrenchments will hit hard in communities reliant on Ford for jobs. Solidarity, a union at Ford, fears this could spark more cuts in the auto sector, with 391 operators at Silverton and 73 at Struandale most affected. NUMSA, representing many workers, has called it a “devastating blow” and demanded talks to find alternatives like retraining or reduced hours.
Ford has started consultations with unions under section 189 of the Labour Relations Act, aiming for fair packages. But workers fear knock-on effects for families and suppliers.
Company Statement: Ford’s View on the Cuts
Ford SA spokesperson Minesh Bhagaloo said the decision was tough but needed due to market changes. The company remains committed to SA, with no plans to close plants, and hopes to bounce back as markets adjust. Ford is exploring ways to support affected staff, like redeployment or skills training.
Union Reactions: Calls for Intervention and Alternatives
NUMSA spokesperson Phakamile Hlubi-Majola called the news “devastating,” urging government help to save jobs. Solidarity’s Dirk Groenewald echoed fears of wider sector cuts, calling for talks on saving positions. Both unions want to explore options like short-time work or export boosts.
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