South African automotive manufacturers on Tuesday announced major investments totaling billions of Rand's.
Ford said it would invest R2.5bn to expand operations in South Africa at its Silverton Assembly Plant in Pretoria.
This, to produce the all-new Ford Everest, along with the new Ford Ranger that was launched at the end of last year.
The Company said the investment would create approximately 1200 new jobs at Ford South Africa and within the South African supplier network.
"Our customers love the capability and utility offered by the all-new Ford Everest," said Jim Farley, Ford executive vice president and president of Europe, Middle East and Africa.
"By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa," he said.
"The R2.5-billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa," Farley added. "It further reinforces South Africa's position as a strategic export base for Ford Motor Company."
Ford's engine plant in Port Elizabeth will play a big part in the R2.5bn investment.
"Currently, the all-new Everest is imported from Thailand, using the locally produced 3.2-litre five-cylinder Duratorq TDCi engine. It is only available in South Africa in 3.2 Automatic guise in two specification levels - XLT and the range-topping Limited. With the commencement of local production, a 2.2-litre Duratorq TDCi four-cylinder diesel engine will be added to the range, along with a wider spread of specification levels," Farley said.
"Built at Ford's Struandale Engine Plant in Port Elizabeth, the latest-generation Duratorq TDCi diesel engines - which are also used in the new Ranger - offer maximum fuel economy along with exceptional performance."
Meanwhile, Volkswagen Group South Africa said it would invest R120m in a newTry-Out Press to improve the manufacturing capability of its Uitenhage Plant.
Managing Director, Thomas Schaefer said "our Uitenhage plant has one of the newest press plants in South Africa and in the Volkswagen Group. The Press Plant was commissioned in 2013 and is capable of producing close to 10 000 parts per day for the Polo, Cross Polo and local Polo Vivo models."
The Try-Out Press is expected to be fully operational by mid-2016.
Last August VWSA also announced a massive R4.5bn rand investment for new models that will be produced at the Uitenhage plant.
The investment includes more than R3bn in production facilities and quality‚ about R1.5 bn in local supplier capacity and a further estimated R22m for the development and training of employees.
