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Ford says it's committed to SA

Johannesburg - Ford has a long-term commitment to South Africa, its regional head says, playing down any concerns about strikes that an engineering federation said had prompted the US carmaker to consider pulling out of the country.

The Steel and Engineering Industries Federation of South Africa (SEIFSA) said the local head of Ford, Jeff Nemeth, told Seifsa's chief executive that "he was under pressure from his head office to pull the company's operation out of South Africa."

Nemeth told Seifsa of concerns within Ford over strike action, said SEeifsa spokesperson Ollie Madlala.

Future products

Nemeth spoke to Seifsa shortly before more than 220 000 workers led by Numsa - the country's largest union - launched a strike for higher pay that has hit the supply of auto parts.

Asked to comment, the president of Ford's Middle East and Africa operations, Jim Benintende, said: "We have a long-term commitment to South Africa... and we're making news next week about future products."

Ford wanted to respect the strike negotiation process "so all we have to say is that we hope all sides come to amicable agreements as soon as possible," he said.

Exports vehicles

The strike, now in its second week, has already forced General Motors to halt production and Ford and other automakers could follow suit if it continues.

The Numsa strike follows a walkout by platinum miners that lasted five months and ended two weeks ago.

A four-week strike last year by more than 30 000 Numsa members at major automakers cost the industry more than R20bn.

Ford sells around 6 00 vehicles a month in South Africa, making it the third-largest seller behind Toyota and Volkswagen and it also exports vehicles from South Africa.


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