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Ford struggling to meet demand of SA-built Ranger
As a result‚ the company was creating an additional 800 jobs by implementing a second shift at its Silverton factory‚ and a third shift at its Struandale engine plant. These new shifts would start on Monday next week‚ Nemeth said.
Nemeth quashed any suggestions that FMCSA was stepping in to add capacity as a result of problems at the Thailand Ranger factory‚ which was still in part recovering from the floods there last year.
In May‚ Bloomberg quoted Ford's Asia Pacific chief Joe Hinrichs as saying that the "the supply base is still fragile and overwhelmed in Thailand"‚ but Nemeth said the firm had since recovered.
"They're 99% recovered. It still affects us in small ways in terms of parts‚ but that's not the reason‚" Nemeth said.
"It's purely an increase in demand. It's been pretty overwhelming‚" he said. "Thailand is building more than expected and Argentina is building more than they expected‚" Nemeth said of the other two locations the Ranger is built globally.
Nemeth pointed out that while the truck was exported from Pretoria to 148 territories‚ there was strong demand in SA. "We've got an open order book. Customers have to wait two to three months for their vehicle depending on the derivative‚" he said.
He said sales in Europe were stronger than expected. "Demand has held up. They're above plan. They've asked for more units‚" Nemeth said‚ adding that demand in sub-Saharan Africa was also stronger than anticipated.
While the Silverton plant had an eventual capacity to build 110‚000 Ranger trucks a year‚ Nemeth said they wouldn't build that many this year. "But we're going to get there as fast as we can."
He said the ramp-up of production was causing "headaches" for some of the company's common suppliers. "And that's us. That's why the engine plant is struggling to keep up with demand. We're way busier than we expected."
Nemeth said the firm's suppliers were scrambling to meet increased demand too. "There's such heavy gearing for our suppliers‚ but as volumes exceed plans the gearing works both ways‚" Nemeth said.
Ford said in an earlier press release that the training of staff had commenced in June‚ and that the addition of shifts "reaffirms its commitment to SA".
In the release‚ Nemeth said the selection and training of new staff had been rigorous.
"We're investing in the continuous training and education of our employees. Each one of the 800 potential new employees underwent comprehensive pre-employment assessment prior to the commencement of training. The successful candidates underwent stringent classroom and on-the-job training; they are now equipped to build high quality Rangers‚" he said.
Last year the company said it had completed a R3.4bn expenditure programme to ramp up for production of the Ranger.
Source: I-Net Bridge
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