AUTO INDUSTRY

US carmaker Ford will invest R2.5-billion to build the new Everest sports-utility vehicle (SUV) at its Silverton assembly plant, in Pretoria.

The plant already produces the Ranger pick-up for the local market, as well as for 148 markets in Africa, the Middle East and Europe. It is the best-selling pick-up in Europe.

Ford has invested R3.4-billion since 2008 to enable large-scale Ranger assembly and exports.

Part of the R2.5-billion investment announced in April will be directed towards assisting Ranger production, with the plant currently running close to maximum capacity to meet demand.

The South African-built Everest will be exported to sub-Saharan Africa, starting in 2017. South African customers may already receive the locally built Everest by the end of the year. Production at Silverton is set to start in the third quarter of this year.

The Silverton plant will produce eight Everest derivatives. The SUV will make use of diesel engines built at Ford’s Struandale engine plant, in Port Elizabeth, says Ford Europe, Middle East and Africa president Jim Farley.

Ford’s investment will create 1 200 new jobs at Ford and in its supply chain, he adds.

“This capital investment shows our commitment to South Africa. When your plant gets a new vehicle, it is a really big deal. This reinforces South Africa as a strategic export base for Ford.”

Trade and Industry Minister Dr Rob Davies notes that the addition of Everest production will aid in boosting output at the Silverton faci- lity from 74 000 units a year currently to 93 000 units a year by 2017 – a 25% increase.

He adds that Ford will receive R699-million in grants from government’s Automotive Investment Scheme to build the new Everest in South Africa.

Everest production capacity at the plant will be around 10 000 units a year, says Ford Motor Company sub-Saharan Africa president and CEO Jeff Nemeth. Total plant capacity is 110 000 units.

“The all-new Everest has been extremely well received since it was launched in September last year, with demand far outstripping supply.”

Nemeth will not divulge local component content on the Everest, but notes that it reaches around 60% on the Ranger.

He tells Engineering News that his company is working on luring suppliers from abroad to South Africa, while it is also of importance to develop a stronger black-owned supplier base.

The Silverton facility joins AutoAlliance Thailan, in Rayong; Ford’s Chennai plant, in India (where it is sold as the Endeavor) and the JMC Xiaolan Plant in Nanchang, China, as production hubs for the Everest.

The Everest is currently imported from Thailand, and uses the South African-produced 3.2 ℓ five-cylinder Duratorq TDCi engine. It is only available in two specification levels. The start of local production will add a less expensive 2.2 ℓ Duratorq TDCi four-cylinder diesel engine to the range, along with a wider spread of specification levels.

Ford grew its sales 10% in South Africa last year, recording sales of more than 78 000 units, of which 34 000 units were Ranger bakkies.