JOHANNESBURG - Ford South Africa is planning to retrench close to 500 workers at its Silverton and Gqeberha plants.
The company is citing a sharp drop in European demand for its Ranger bakkie.
UK tax changes are largely driving the decline as double cab bakkies will be taxed as passenger vehicles, making them more expensive to own.
This has forced the company to scale back production.
Adding to the pressure is weaker-than-expected demand for the plug-in hybrid Ranger, which is built in SA for export, mainly to Europe.
Despite the issues, local Ranger demand remains steady though the plant is currently running below its full 200,000-unit capacity.