Ford on Trump’s tariffs: Africa market impact

President Donald Trump's recent implementation of 25 per cent tariffs on the global auto industry has sparked concerns and discussions worldwide. However, speaking at the Gauteng Investment Conference, Neale Hill, President of Ford Group Sub-Saharan Africa, expressed optimism regarding the minimal impact of these tariffs on the African continent. Hill highlighted the recent commitment from an EU trade delegation to invest billions of euros in South Africa, indicating potential positive developments in the region's trade landscape. While acknowledging the interconnected nature of the auto industry and potential implications for South African OEMs reliant on exports to the US, Hill urged for a cautious approach amidst the early stages of the tariff implementation. When questioned about the impact of tariffs on the push towards electrification within the industry, Hill emphasized Ford's diversified approach towards exploring different propulsion technologies. He underscored the importance of aligning production strategies with market demands and affordability considerations for customers in the new energy vehicle segment. Despite recognizing the potential influence of tariffs on the industry, Hill emphasized that broader market dynamics are key drivers in the transition towards new energy vehicles. Amidst concerns about supply chain disruptions due to global tariff shifts, Hill reassured that Ford, with its global supply network, is not currently experiencing significant impacts on part supplies in South Africa. Stressing the early stage of the tariff implementation, Hill expressed uncertainties regarding potential future impacts but reassured customers of Ford's commitment to maintaining affordability and stability in pricing for their vehicles. While acknowledging the possibility of price increases due to various factors like exchange rates and inflation, Hill emphasized the continued efforts to keep motoring accessible for consumers in the region, particularly through the production of the Ford Ranger in South Africa with a high local content percentage. Overall, Hill's message resonates with a sense of cautious optimism amidst the evolving global trade landscape, emphasizing the need for adaptive strategies and a focus on local production to navigate potential challenges in the industry.