2 days ago
Almost R1-billion to fuel Ford's journey to transform dealerships and keep customers for life
After 103 years in South Africa, Ford is doubling down on its dealer network and customer experience in the face of economic pressures, global disruption and a changing local market.
Ford has weathered world wars, oil shocks and economic downturns since setting up shop in South Africa in 1923. Now it faces a market hit by affordability pressures, global supply shocks and a tidal wave of overseas competitors.
Ford South Africa president Neale Hill believes the answer to this is a better customer experience.
'The experience we want to give our customers is not only in terms of the vehicles that they drive, but the ownership experience coming into dealerships needs to match that positioning in our vehicles,' Hill said.
This repositioning comes after Ford ranked fourth in Original Equipment Manufacturer (OEM) market share with 6.5% and 3,058 units sold, trailing Toyota, Suzuki and Volkswagen in June.
A 'family promise'
Central to Ford's strategic pivot is its so-called 'Ford family promise' – a set of 22 initiatives aimed at smoothing out the pain points of owning a car.
Unlike a guarantee, Hill calls it a 'proactive approach'. This ecosystem leans on Ford dealerships across the country with the goal of covering the entire customer journey, such as servicing, extended plans, warranties and finance under one roof.
As Ford shifts up in terms of its market positioning with vehicles it describes as 'premium quality', the service experience needs to match the positioning of its vehicles, said Hill.
In June 2025, Ford overtook Hyundai in new vehicle sales volume, according to data from the Automotive Business Council. (Data visualisation: Kara le Roux )
R900m and a new look
Big promises demand big money. Ford's dealership partners are investing more than R900-million into upgrades and new facilities by 2027.
In 2024 alone, 20 projects were on the go, said Ford network operations manager Kuda Takura, valued at R292-million.
The company operates across 118 dealerships, supporting 10,600 jobs, according to Takura. Investments are split between 'greenfield projects' (new builds) and 'brownfield' upgrades to existing facilities.
Ford is rolling out a new 'signature design' across its network, a concept dreamed up with input from its research team in the US.
Forget showroom floors packed with cars. 'One would think the first thing you want to see when you walk into a dealership is a motor vehicle. Instead, you see what we call the 'social hub', a space where you come together,' Takura said.
It's designed to be a comforting space customers want to spend time in, as an emotionally connected customer tends to spend twice as much and stay loyal, said Michael Zahariev, co-founder of Luxity, a designer reseller in South Africa.
'While the product might get you through the door, the experience is what keeps you coming back.'
Ford's data seems to align with this retail trend. 'Dealers who invest in retail design and design standards see an uptick in their vehicle sales together with overall profits,' Takura said.
A game of 'three-dimensional chess'
Hill describes the auto industry as being in 'a very interesting state of flux' – a diplomatic way of describing a sector in which automakers are playing 'a game of three-dimensional chess', he said, with propulsion choices, new energy vehicles and battery electric in the mix.
Indian and Chinese imports are flooding South Africa. In 2024, India accounted for 57% of imported passenger cars and lightweight vehicles; China was second at 17%, the Automotive Business Council's (Naamsa) data shows.
South Africa now has 14 Chinese brands in play, Naamsa said, six of them launched last year alone. Growth is strongest in passenger vehicles and mini and small utility segments, according to Ford sales director Ryan Searle – categories Ford no longer serves.
That shift has cost Ford market share, though it still grew sales by 8% year on year, said sales chief Ryan Searle. Its workhorse Ranger bakkie remains the backbone, making up 70% of volume, with the Territory SUV gaining traction.
Tariff wars, protectionist policies and fractured supply chains have turned the industry into a geopolitical pressure cooker. 'It's going to take quite a while for this to settle down and for absolute clarity to come to the fore in terms of what the auto industry as a whole looks like at the end of it. You've got markets that are now seeing that tariffs are an acceptable form of defence,' Hill says.
'The first six months of Mr Trump being in the White House, he's certainly thrown the proverbial – I wouldn't even call it a cat, I'd probably call it a fox or a lynx – among the pigeons.'
What this means for you
Ford dealerships will start to look and feel more like luxury lounges than showrooms.
Servicing your vehicle might become easier with online bookings and pickup options.
Imported brands may keep vehicle prices competitive, but tariffs could change that.
Local auto jobs remain at risk if manufacturing slows.
An industry on edge
South Africa's auto sector is one of the country's largest manufacturing segments, employing about 112,000 people directly and supporting about 320,000 jobs when you include the supply chain, according to the Department of Trade, Industry and Competition's 2035 Master Plan.
That's why Hill bristles at the idea of losing local production to imports. 'When you lose a manufacturing sector, you never get it back,' he warned, pointing to Goodyear's recent decision to shut its Kariega plant. 'That's testament to low to no growth rates, no economic development and an economy that is stagnating.'
The fear is that if local OEMs falter, the ripple effect will gut suppliers, jobs and export earnings. Hill argues that some form of government intervention – incentives, support – is non-negotiable to keep the industry viable. DM
