Ford’s South Africa unit to invest $281m in hybrid vehicles

Daba Finance/Ford South Africa to invest in hybrid vehicles

AFRICAN BUSINESS AND ECONOMYNovember 10, 2023 at 10:48 AM UTC

Ford's South African unit has announced a significant investment of $281 million to manufacture a hybrid vehicle in the country. This move is part of Ford's broader commitment to developing and producing more environmentally friendly vehicles.

The investment comes with a plea from Ford to the South African government to expedite the implementation of an electric vehicle (EV) policy. As global markets, particularly in Europe, shift towards electric mobility, there is growing urgency for countries to establish clear policies and frameworks to support the transition to EVs.

Andrea Cavallaro, Ford's operations director of the international market group, emphasized the importance of finalizing the government's EV policy swiftly, highlighting that other countries are making rapid progress in this area.

Key Takeaways

South Africa's auto industry plays a vital role in the country's economy, contributing 5% to the GDP and providing employment to over 100,000 people. The majority of cars produced are exported, with a significant portion going to European markets. With the UK and Europe setting timelines to ban the sale of new petrol cars by 2035, the South African government and automakers are under pressure to devise a strategy to transition to electric vehicles and remain competitive in the evolving automotive landscape. Widely regarded as the last frontier for the global development of the automotive industry, Africa has become a very important market for global automakers, who are increasingly setting up manufacturing hubs on the continent.

Ford

South Africa

Green transportation

Electric Vehicles

Andrea Cavallaro