The Minister of Trade and Industry, Dr Rob Davies says that Ford Motor Company of Southern Africa’s (FMCSA) R2.5 billion investment to expand operations at its Silverton assembly plant in Pretoria is an important indication of confidence in South Africa and the significance of the Africa Growth and Opportunity Act (Agoa) two-way benefits. Minister Davies was speaking at the launch event in Pretoria today, where Ford announced expansions to its local production.

“The automotive industry is of significant importance to South Africa. To date we have invested more than R25 billion in the motoring industry and are positive that through this investment we will see more and more vehicles manufactured locally,” said Davies.

In addition, Davies announced that the Department of Trade and Industry (the dti) had awarded FMCSA with a R699 million incentive through the Automotive Production and Development Programme (APDP) incentive for their latest investment expansion.

“We have completed the review of the APDP and the results were welcomed by the industry. We have also established the one-stop investment shop which is intended to interact positively with investors. We wish this venture every success,” said Davies.

Ford Executive Vice President and President of Europe, Mr Jim Farley said the investment will create approximately 1 200 new jobs at Ford South Africa and within the South African supplier network. The FMCSA investment will lead to local production of the all new Ford Everest seven-seater Sport Utility Vehicle (SUV) and expansion of the new Ranger pickup programme.

“Our customers love the capability and utility offered by the all-new Ford Everest. By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa. The R2.5 billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa. It further reinforces South Africa’s position as a strategic export base for Ford Motor Company,” added Farley.

The initial production of the Everest at the Silverton plant will commence in the third quarter of 2016, with the first units expected to enter the market in the fourth quarter. South African-produced models will be sold locally and exported to markets across Sub-Saharan Africa.

 

Issued by Department of Trade and Industry