---
title: "Ford retrenchments in South Africa tied to UK tax shift, lower volumes"
description: "Ford SA plans to cut nearly 500 jobs as European tax changes and weak demand for its plug-in hybrid Ranger dent export orders. Local production remains steady, but global shifts are forcing the automaker to scale back operations."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "RANGER RETRENCHMENTS"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-10-02-ford-retrenchments-in-south-africa-tied-to-uk-tax-shift-lower-volumes/"
published: "2025-10-02T05:46:46"
updated: "2025-10-06T16:22:54"
lang: "en-ZA"
word_count: 379
---

# Ford retrenchments in South Africa tied to UK tax shift, lower volumes

> Ford SA plans to cut nearly 500 jobs as European tax changes and weak demand for its plug-in hybrid Ranger dent export orders. Local production remains steady, but global shifts are forcing the automaker to scale back operations.

By Reuters · Published 2 October 2025, 07:46 SAST · Updated 6 October 2025, 18:22 SAST

## Key points
- Ford's South African operations are bracing for a painful downsizing, as dwindling European orders for its Ranger pickup—thanks to a tax reclassification that’s left buyers feeling pickled—force the company to cut nearly 500 jobs and scale back production shifts.
- Ford South Africa plans to retrench 474 workers due to decreased European orders for its Ranger pickup, linked to new UK tax regulations.
- The company has reduced operations from three shifts to two amid declining demand for its plug-in hybrid Ranger model.
- UK tax changes reclassifying double-cab pickups as passenger cars have made ownership more expensive, impacting sales.
- Despite challenges in Europe, Ford's South African operations remain stable, with production capacity underutiliSed at 100,000 vehicles this year.

## Content

GQEBERHA, South Africa, Oct 1 (Reuters) - The South African arm of Ford Motor has attributed the planned retrenchments to lower European orders for its Ranger pickup truck, driven by recent tax changes in the UK and sluggish export volumes for its plug-in hybrid Ranger model.

Last month Ford sent an official notice to unions, notifying them of its intention to [retrench](https://www.reuters.com/business/world-at-work/ford-south-africa-lay-off-over-470-workers-car-engine-plants-2025-08-28/) 474 workers at its Silverton car manufacturing plant in Pretoria and Struandale engine plant in Gqeberha.

Ford exclusively produces the plug-in hybrid Ranger for global exports, mainly Europe. It also produces the internal combustion engine Ranger for the local and export markets.

Neale Hill, President of Ford Motor Company Africa, told Reuters on the sidelines of an auto conference on Wednesday that the company has been forced to scale down, following a drop in demand for its Ranger.

"Ford Motor Company of Southern Africa is continuing its three-shift production schedule. There will be adjustments to outputs on the production line, but the number of shifts will not change," he told Daily Maverick.

In the UK, from the start of April 2025 double-cab pickups with a payload of one tonne or more have been reclassified as passenger cars rather than commercial vans for tax purposes, making them more expensive to own.

"As a consequence of that, people have unfortunately reduced their volume. So that's had a big impact in terms of our European orders," he said.

Adding to the pressure are the low volumes of Ford's plug-in hybrid Ranger.

"We haven't seen the plug-in hybrid Ranger hit the volumes that we've been looking for," Hill said. "It's an expensive vehicle, plus, we are not getting to the European originating content, which then makes it able to go into Europe duty-free."

Hill added that volume for South Africa is still stable and probably increasing slightly.

Ford's plant has a capacity of 200,000 vehicles annually but at the moment it is not utilizing all of it.

"Currently this year will be about 100,000 and the installed capacity at capable volume is 140,000. That's what we'll keep going forward," Hill said. **DM**

Reporting by Nqobile Dludla, Editing by Nick Zieminski

*\*This article has been edited to clarify that Ford will not be cutting down from three shifts to two shifts*.