Ford’s subsidiary in South Africa to allocate $281 million towards the production of hybrid vehicles

Ford Motor Company’s South African division has declared an investment of 5.2 billion rand (approximately $281 million) to manufacture a hybrid model in the country. This significant investment underscores the urgency for the South African government to develop a robust electric vehicle policy amidst rapid global shifts toward sustainable automotive technology.

South Africa’s automotive sector, a critical component of its economy representing 5% of the GDP and sustaining over 100,000 jobs, is predominantly export-oriented. With approximately three-quarters of its cars exported primarily to Europe, the looming bans on the sale of new petrol vehicles by 2035 in the UK and Europe pose a significant challenge to the industry.

The South African government has been cautioned about the potential existential risk to the auto sector, and manufacturers are increasingly advocating for a clear governmental strategy to embrace electric vehicles. “The government really needs to finalize its policy and get it out there because other countries are moving fast, very fast,” stated Andrea Cavallaro, Ford’s operations director of the international market group, in an interview with Reuters.

As the transition to electric vehicles continues to be a topic of strategic importance, Ford is concentrating its efforts on hybrid vehicles. These cars offer the versatility of running on both petrol, like traditional internal combustion engine vehicles, and electric charge, serving as a bridge in the transition to fully electric models.

The celebration of Ford’s centenary operations in South Africa coincided with the announcement of the Ranger hybrid car investment. Starting from late 2024, the new Ranger Plug-in Hybrid Electric Vehicle is set to be produced at Ford’s manufacturing plant in Pretoria.

Neale Hill, President of Ford Motor Company in Africa, commented on the swift uptake of new energy vehicle technologies, indicating a significant shift in the automotive landscape. According to Cavallaro, Ford is planning to export around 70% of the 44,000 Ranger vehicles, targeting markets in Europe, Australia, and New Zealand.

This move by Ford is not just a significant investment in South Africa’s manufacturing capabilities but also a strategic pivot towards greener, more sustainable vehicle production that aligns with global environmental trends and regulatory shifts.