DAVID FURLONGER: Ford’s Kay Hart has big plans for South Africa

What does South Africa have in common with Australia, India, Saudi Arabia, Vietnam, Mexico, South Korea and the Philippines? Kay Hart means to find out very soon.

In February Hart was appointed president of Ford’s International Markets Group (IMG), a conglomeration of about 100 emerging and developed countries outside the major new vehicle markets of North America, Europe and China. South Africa, where Ford builds the Ranger bakkie, mainly for export, is an important part of the jigsaw.

The rest of Africa is also part of her remit, as are the Middle East and large chunks of Asia. So how does she manage so many diverse markets? Is there one IMG strategy, or 100?

Definitely one, to be adapted for each destination, she says. While admitting that “I’ve had no time yet to get my head round all the countries”, she’s already familiar with some.

She’s no stranger to South Africa and previously ran Ford operations in Australia, New Zealand and the Philippines. “Through my Ford background, I’ve engaged with a number of other IMG markets,” she says. Still, “I certainly don’t have a deep knowledge of every one and I want to get out there to understand the issues on the ground”.

Hart, a New Zealander, was in South Africa last week for an African dealer conference and a first-hand update of what’s happening at Ford South Africa. Its assembly plant in Silverton, Tshwane, started production of the latest Ranger bakkie model late last year, after a R15.8bn investment from the US.

Ford Africa president Neale Hill, whose responsibilities include Silverton, reports to Hart.

Her global roles at Ford have included involvement in van and bus operations and battery-electric vehicles (BEVs). The latter gives her expert insight into one of the biggest challenges facing the South African motor industry. The government recently missed its latest deadline to provide a policy to encourage the local manufacture and sale of EVs. Such a policy was originally expected in 2021. Without it, motor companies say they can’t confidently follow most of the world in switching from petrol and diesel internal combustion engines (ICEs).

Ford South Africa’s main Ranger export markets are in Europe, where sales of new ICE vehicles will be phased out over the next 12 years, in favour of EVs. Hill says Silverton’s assembly lines can build EV versions, but, like other companies, Ford needs policy clarity.

Hart says: “We have a very clear plan for production that will fit into the EV space. That switch is inevitable. Customers are demanding it and we will tap into the experience of other Ford markets around the world.”

It’s not just a matter of servicing ICE-phobic export markets. Multinational motor companies like solid demand for products in the countries where they are built.

South Africa’s EV market is tiny. There is consumer interest but vehicles are too expensive for most people. That’s why many in the industry are calling for both manufacturing and price incentives. The government has suggested it prefers the former only. While it makes up its mind, uncertainty increases.

In countries where EV sales have flourished, it is because of “clear government mandates”, says Hart. “There is not the same clarity [in South Africa] as in other markets.”

Though the rise of EVs is inevitable, she says the South African market has more breathing space than some others around the world. In a number of countries, the official transition from ICE has already begun. In much of Europe, it is only a couple of years away.

In South Africa, however, “we won’t see the rapid pace of electrification that we are seeing in other parts of the world”. Even as EVs increase their market share, “we can definitely expect ICE to be here for the next 10 to 12 years”, says Hart.

Ford isn’t even prepared to import EVs until there is a proper public charging network around the country. “If you don’t have the infrastructure to support [EVs], customers will have an inferior experience,” says Hart.

The local R15.8bn investment raised annual Ranger production capacity — including the Raptor high-performance variant — to 200,000, a level Hill thinks will come within reach by the end of 2024. Until recently, Silverton concentrated on building double-cab versions of the new model, but now other versions are becoming more visible in showrooms.

The same can’t be said for Ford cars. In the first two months of this year, the company sold one Fiesta, 39 Mustangs, 321 Everests and 691 EcoSports — a less-than-grand total of 1,052. Of those, the solitary Fiesta is the only mass-market car with which Ford is traditionally associated. The Mustang is a sports car and the other two are SUVs.  All four products are imported but Ford has confirmed that the Fiesta and EcoSport are being discontinued internationally. Ford is moving away from its traditional passenger car base, towards flexible-use SUVs, bakkies and vans. New SUV models are due in South Africa later this year but Hill says: “We always said that 2023 would be a transition year when we would focus on Ranger, Everest and Raptor.”

So what happens to traditional Ford car customers? Will they stay loyal with limited options? “We recognise the risk of not having cars,” says Hill. “We don’t underestimate the challenge we will face in the car market.”

IMG countries account for 7.2% of worldwide Ford sales, a share Hart is confident she can increase, though she won’t state a target. Africa, including South Africa, can play an important part in that potential growth. Ford is among global motor companies pushing for the creation of regional, interlinked motor industries across the continent. As things stand, only South Africa and Morocco have substantial automotive sectors.

Ford tried to help get Nigeria’s fledgling industry under way by exporting previous-generation Ranger kits from South Africa for local assembly but has suspended activities there because of the Abuja government’s failure to abide by its own policies. Instead, Nigeria has reverted to a plain export market for fully built Rangers.

In the meantime, Ethiopia and Kenya are among countries on Ford’s radar for possible future vehicle assembly.

In 2023, Ford is celebrating the centenary of its presence in South Africa. It came here not just for the domestic market but also in the expectation that the rest of the continent would provide substantial, long-term growth. It’s still waiting.

“People say: ‘It’s coming, it’s coming,’” says Hill. Now, with the acceptance of the African Continental Free Trade Area, signed by 54 countries, he thinks it really may be.

Hart says: “We have to bring industrialisation to Africa.”​