DistantNews
Support us
🇿🇦 South Africa /Economy & Trade

AUTOMOTIVE INDUSTRY: South African carmakers are tired of waiting for government support

From Daily Maverick · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Interview Named sources Ongoing story
  • Ford Africa President Neale Hill said South African automakers compete globally for investment against manufacturing hubs including Thailand, Argentina and North America.
  • He criticized the two-year review of the Automotive Production and Development Programme, saying delays have cost the industry 24 months.
  • Hill also called for stronger local procurement rules and equal requirements for established manufacturers and new entrants.

South Africa’s carmakers are competing for investment with Thailand, Argentina and North America, and Ford Motor Company Africa President Neale Hill says the country can no longer rely on goodwill to secure capital.

“South Africa’s benevolence as a rainbow nation has unfortunately expired,” Hill told Daily Maverick, arguing that investment capital is indifferent to location. He cited Morocco’s proximity to Europe and faster policy decisions as reasons it has overtaken South Africa as Africa’s leading automaker.

South Africa’s benevolence as a rainbow nation has unfortunately expired.

· Neale HillHill argued that South Africa must compete directly for automotive investment rather than depend on investor goodwill.

The industry has discussed changes to the second phase of the Automotive Production and Development Programme with the Department of Trade, Industry and Competition since 2024. Hill said the review remains stuck in discussions. “We shouldn’t be in discussion phase two years later … we’ve wasted 24 months.”

He also criticized government fleet procurement. Although the state is the country’s largest fleet operator, Hill said it does not consistently follow a “buy local first” policy. Updated selection rules give price a 90% weighting, compared with 5% for local production and 5% for BBBEE compliance.

We shouldn’t be in discussion phase two years later … we’ve wasted 24 months.

· Neale HillHill criticized the slow review of the automotive production incentive program.

Hill blamed the government for failing to protect domestic manufacturers after Goodyear closed its Kariega plant on 15 August 2025 and shifted to imports. He said cheap tyres from China and India had been allowed to flood the market.

Ford does not oppose Chery’s expansion near Pretoria, Hill said, but wants the same rules applied to every manufacturer. “We welcome competition… Ford established the local manufacturing industry in South Africa and has faced disruption before… It’s got to be done on an equal playing field... There can only be one set of rules.” Established manufacturers operate completely knocked-down plants, require deep localization and must maintain Level 4 BBBEE status. Hill said new entrants should not receive temporary semi-knocked-down licences or concessions that exempt them from similar obligations.

We welcome competition… Ford established the local manufacturing industry in South Africa and has faced disruption before… It’s got to be done on an equal playing field... There can only be one set of rules.

· Neale HillHill explained Ford’s position on new competitors entering South Africa’s automotive market.
About this summary

Originally published by Daily Maverick in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog