Ford South Africa has given official notice of its intention to retrench employees as part of a “realignment” to match market demand.

The group has given notice that 470 positions will be impacted, affecting workers at the Silverton plant in Pretoria and the Struandale engine plant in Gqeberha.

According to the notice, as reported by trade union Solidarity, Ford says the job losses follow a “realignment” of its production capacity to match current and expected market demands. This means terminating 391 operator positions in Silverton, 73 at Struandale and 10 administrative positions.

While the retrenchment notice comes as the wider automotive sector is being hit export tariffs to the United States, Ford SA told BusinessTech that its local operation does not export to the US. Instead, the group said that it is “making necessary adjustments” to its manufacturing operations as part of ongoing efforts to optimise production.

“We regret that these essential plant adjustments will result in a reduction of positions across both facilities. We understand the impact this has on our valued employees, and we are committed to supporting those affected. As part of this process, we will be offering voluntary separation options,” the notice said.

Ford said it is committed to transparent and respectful engagement with its employees and is currently consulting with representative unions through the required consultative processes regarding these proposed changes.

“We see this announcement as the beginning of possible greater job losses facing the entire automotive industry in South Africa,” says Willie Venter, deputy general secretary of Solidarity.

According to Venter, economic pressure, international political uncertainties, and the government’s unfavourable policies are causing this industry to become increasingly uncompetitive.

“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire sector. We fear that further retrenchments in this industry may be inevitable if the circumstances do not improve quickly,” he warns.

“We will explore every possible alternative to limit job losses, and we will ensure that Ford not only fulfils its duty, but that employees are treated fairly,” says Venter.

Solidarity also pointed out that these retrenchments will have a serious impact on the communities in Pretoria and Gqeberha and that it once again shows how vulnerable South African industries are under the current economic climate.

“Without effective intervention and economic reform on the part of our government, our country will have to endure even more job losses,” says Venter.