By starting Everest manufacture andboosting overall production numbers in South Africa, Ford South Africa is adding1 200 new jobs at the Silverton Plant in Gauteng as well as in its supply chain countrywide. From a product point of view the big news is that the Everest range will expandto include 2.2 and 3.2 models, with introduction scheduled for late 2016. This Everest will then be exported into Sub-Saharan countries.Currently, the Ford Everest is imported from Thailand. In the process production output will be boosted from around 74 000 (2013) to 93 000 (2017) per year.
Speaking to Cars.co.za's Hannes Oosthuizen following the announcement, Ford Sub Saharan Africa President andCEO Jeff Nemeth, said that the decision to build the Everest locally was made years ago when it first saw the new Everest and completed its local market feasibilitystudies on the vehicle. It was clear, way back then already, that the Thailand plant would not be able to satisfy South African demand.
“Our customers love the capability and utility offered by the all-new Ford Everest,” said Jim Farley, Ford executive vice president and president of Europe, Middle East and Africa. “By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa.“The R2.5-billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa,” Farley added. “It further reinforces South Africa’s position as a strategic export base for Ford Motor Company.”
The bulk of the R2,5 billion spend took place in the Silverton plant where new carriers for the Everest, as well as an all-new bodyshop were some of the big-ticket items. But importantly from the country's and a more general point of view, major investment continues to be made in the supply chain. In fact, Nemeth says that there are currently more than 120 localisation cases being studied and that the company is constantly looking at ways to localise. For the Everest in particular improved localisation is something that will be an on-going strategy. To get the vehicle into local build as quickly as possible meant that it doesn't currently offer the same very high levels of localisation as the Ranger, which consequently can be imported to Europe.
The engine for the Everest comes from the Struandale Plant in Port Elizabeth, Eastern Cape. This 3.2-litre five-cylinder motor currently offered in the Everestwill be joined by the 2.2-litre four-cylinder engine, and it's this smaller unit which will debut in the Ford Everest soon. Expect to see an expanded (8 models)Everest line-up comprising big and small diesels, automatic and manuals soon. Given that rivals Toyota launched a complete and comprehensive Fortuner lineup, this countering move by Ford comes at an excellent time.
Ford has seen Africa's potential and this investment is not the first time the Blue Oval has chosen this region. Back in 2008, Ford announced plans to build the Ranger at its Silverton plant and the Ranger has been a rampant sales success ever since. Currently, the South African-made Ranger is exported to 148 countries around the world, while the engines and components are supplied to Argentina, Thailand, North America, China and India.