SA loses Ford Focus deal to Australia

Ford Mondeo is Auto Express Car of the Year

Pretoria - The Ford Motor Company of Southern Africa has lost the contract to make the new-generation Ford Focus to Australia from 2010, partly because of uncertainty over the midterm review of the motor industry development programme (MIDP).

Ford spokesperson Ben Pillay yesterday confirmed that production of the Focus would shift to Australia from about 2010 or 2011.

But Pillay skirted the issue when asked how many jobs would be at risk if the firm was unsuccessful in its bid for an alternative production contract. He said the Silverton plant employed about 3 000 workers and almost 40 percent of production at the plant was dedicated to the manufacture of the vehicle.

Production was shifted to Australia after a "competitive review" of Ford's various manufacturing facilities. "The programme would have helped us. But it is not the only factor," Pillay said.

Ford secured the Focus contract in 2003 and produces about 70 000 units annually for the domestic and export markets.

Pillay said Ford was studying an alternative manufacturing programme for the Silverton plant, but was unable to give details other than it would involve similar or higher volumes than the current programme.

Ford was looking at improving the efficiency of its manufacturing facilities for the programme "or otherwise we won't be competitive", he said.

However, Pillay admitted that uncertainty about the programme was a disadvantage to Ford in bidding for an alternative contract.

Source: [url=http://www.busrep.co.za/index.php?fArticleId=3952097]Business Report[/url]