Ford is set to begin assembling the new Ranger in Nigeria later this year in a move that will bolster its presence on the continent, without any real negative impact on the South African plant.
Ford has partnered with Coscharis Motors to assemble the bakkies from semi-knockdown kits imported from South Africa. Nigeria thus becomes the first African country outside of SA to produce Ford vehicles and the new plant, based in Ikeja, will produce for its home market only.
Nigeria, which recently overtook SA to become the continent's largest economy, is a priority market for Ford and the company's CEO for sub-Saharan Africa says the move will allow it to better serve its customers "from a retail point of view and in terms of vehicle and parts availability".
Yet the new operation poses no real threat to the South African plant in Silverton, which currently produces the Ranger for local consumption and export to 148 countries, and which will continue to do so for the new model.
Besides the fact that the Nigerian plant has a capacity of just 5000 units per annum, SA remains an important production base for Ford, and one that is already operating at full capacity trying to meet global demand for the Ranger.
When asked about the future of the local plant and industrial relations, Nemeth said that if anything Ford would aim to increase SA production in the long-term and that he did not see South Africa as having any labour disadvantage over other African countries.
Nemeth also feels confident that the unions are working to harmonise labour relations between the different vehicle sectors, which should lead to less disruption in future.
During last year's labour unrest, an engineering federation claimed that Nemeth had said he'd been put under pressure to close the Silverton plant but Ford denied this and reiterated its commitment to the country.