Ford Vehicle

Vehicle manufacturer Ford Motor Company of Southern Africa (FMCSA) would start discussions with the relevant unions about possible retrenchments at its Struandale engine plant, in Port Elizabeth, and the Silverton assembly plant, in Pretoria, on Wednesday, said FMCSA president and CEO Hal Feder . The company had already offered salaried staff the option of voluntary separation and early retirement packages.

The National Union of Metalworkers of South Africa (Numsa) said in a statement issued last week that the manufacturer was now also planning to retrench about 800 workers from these two plants, owing to declining production capacity. However, said Feder, ‘њit is too early to say what the outcome of these discussions will be. ‘њWe have told the unions that we are experiencing some pressures and that we are revisiting our business structure; that we need to find a way to remain cost competitive.

‘њWe know that our revenue for 2009 is going to be much the same as 2008, and we are looking very hard at our costs. We have already integrated the Bantam and Ranger production lines; we’ve saved on utilities. Obviously losing people is the last thing we want to look at.

‘њWe have not retrenched anyone yet ‘“ I don’t know if we will, and I can’t say we won’t.’ќ South African vehicle manufacturers and importers have been struggling with declining sales over the last year as increasing vehicle prices, inflation rates and interest rates had seen customer spending retreat sharply.