Ford dealerships to invest over R900m in SA despite volatile vehicle market

FORD dealership owners in South Africa have committed more than R900 million over three years on new and upgraded dealerships, reaffirming the local motor manufacturer's long-term commitment at a time when other manufacturers may be lowering their presence in the market.

- EDWARD WEST

Ford Motor Company Africa President, Neale Hill, speaking at the opening of a new multi-brand dealership in Paarden Island, Cape Town on Thursday, said this investment was against the backdrop of great flux and uncertainty in the South African vehicle industry.

This as seven local manufacturers were facing growing competition from models imported by a fast increasing number of China and Indian manufacturers, particularly in the under R500 000 vehicle market.

Many vehicles exported from South Africa will soon also likely face additional import tariffs in the US - Ford South Africa exports to markets in Europe - while the industry would also have to adapt to shifting global trends towards electric, hybrid, or other combinations of vehicle renewable energy systems.

In addition, the announcement in June of the closure of the Goodyear tyre manufacturing facility in Kariega by December 2025 was an indication of the toll that years of anemic economic growth was having on the South African market.