At a Time of Retreat, Ford Leans In

While some global automakers are downsizing or exiting the South African market altogether, Ford and its dealership network are doing the opposite doubling down with a hefty R900 million investment in new and upgraded dealerships across South Africa and its neighbouring countries.

The announcement was made by Ford Motor Company Africa President Neale Hill during the launch of a new multi-brand dealership in Paarden Island, Cape Town on 17 July 2025. In a year that has seen the closure of the Goodyear plant in Kariega, economic stagnation, and fierce competition from Chinese and Indian automakers, the move feels bold and undeniably optimistic.

What’s Driving the Investment?

Simply put, Ford is betting on its dealer-first model to win over modern South African consumers.

“While others consolidate, Ford is evolving,” said Hill. “Our partners, the dealerships themselves are showing their belief in the brand by putting serious money behind their businesses. That’s a vote of confidence in our people, our direction, and our customers.”

The R900 million, committed over a three-year period, will go towards building modern dealerships, boosting digital readiness, upgrading aftersales support, and refining locations, all designed to future-proof Ford’s local retail strategy.

Context: A Shifting Industry Landscape

The South African vehicle market is under pressure. Imported models under R500,000 from Asia are flooding the entry-level space, squeezing traditional OEMs. Meanwhile, electric vehicle (EV) adoption and supply chain constraints are reshaping global automotive priorities.

To complicate matters further, US import tariffs are expected to hit vehicle exports from South Africa — including Ford’s, adding new uncertainty to an already complex equation.

And then there’s the economic reality: thanks to a high interest rate environment, many consumers are paying up to 30% more today on car repayments than they were before COVID-19.

Ford Bets on the Premium Segment

Ford South Africa is not chasing mass market share but rather zeroing in on what it does best: premium vehicles like the Ranger Double Cab, currently South Africa’s top-selling bakkie. That focus is paying off,  dealer sales accounted for 85% of all new vehicle sales in South Africa in the first half of 2025, with Ford holding 6.5% of the market as of June, landing in fourth place nationally.

Ford’s Ranger volumes, both locally and in export markets, continue to be the cornerstone of its growth, even as the passenger vehicle segment leads overall market expansion.

Jobs, Confidence, and Long-Term Strategy

Beyond the numbers, the Ford dealer network is a major employer, supporting over 10,000 jobs directly in South Africa. Hill cautioned against the erosion of local manufacturing capacity, noting that “lost production is very rarely restored.”

In the broader context of 450,000 motor industry jobs nationally, Ford’s dealer investment comes as a lifeline — and a loud signal that Ford is here to stay.

The Retail Design Factor

Ford South Africa’s network operations manager, Kuda Takura, highlighted that upgraded dealerships outperform older ones across all major customer satisfaction metrics. That insight comes from Ford’s 2023–24 Global Retail Assessment, backing up the belief that better design leads to better business.

Twenty dealership projects, a mix of new builds and facility upgrades are already underway in 2025 alone.

Why This Matters to South Africans

In a time where economic headlines are filled with closures, cuts, and exits, Ford’s R900 million commitment offers a rare story of growth and stability. For customers, it means better service, closer support, and access to a premium brand that isn’t going anywhere. For the broader automotive sector, it’s a challenge to think differently about long-term sustainability in a volatile landscape.

As Hill put it: “This isn’t just about bricks and mortar, it’s about building the next chapter of Ford in Africa.”

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com