October
25, 2008
 
 
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 Business front page

Make lemonade, advises Ford boss

Bob Kernohan BUSINESS EDITOR

kernohanb@avusa.co.za

PUTTING a positive spin on the critically stalled domestic and international motor industry is no easy task, but Ford South Africa president and chief executive Hal Feder came close this week.

“A crisis is a terrible thing to waste as it also creates opportunities to make changes necessary to be successful in the long term. That is what Ford is doing, globally and locally,” he said in Cape Town at the launch of a new Fiesta.

The slim-line Fiesta is the first car to feature “eco- boost”, which is a new-technology, fuel-efficient and low carbon dioxide-emitting turbo-diesel engine. “The same diesel engine and this Fiesta will also be going to the US as part of Ford‘s strategy to downsize their cars and introduce latest technology.

For Ford, says Feder, diesel technology makes lots of sense as it has already been developed and is becoming increasingly more advanced.

“Unlike some hybrids and other alternative power systems, diesel technology is already affordable and also enables the buyer to see an immediate return in lower fuel bills and lower emissions.”

On the local front, says Feder, the launch of the Fiesta will be followed up by more product introductions at the Johannesburg international motors show in early November and beyond that to the middle of next year.

By then, 98 per cent of Ford‘s line-up in South Africa would have been “refreshed”.

“We have just updated the Mazda range, as well as separating and upgrading major Ford-Mazda dealers in a R600-million programme.”

Exports will also continue to be crucial for Ford SA, both through its assembly plant at Silverton, Pretoria, and at its engine plant at Struandale in Port Elizabeth.

“Our plan to invest R1,5- billion has not shrunk, although it would be irresponsible to say that there could be no changes.”

Before that, the company will be completing “voluntary termination” plans, with the first of 160 early retirements of salaried staff to begin at the end of this month.

Meanwhile, a 60-day schedule of talks with union representatives on 800 hourly employees taking termination packages is at the halfway stage.


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