Ford Cancels SKF Contract, 250 Could Lose Their Job

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American car manufacturer Ford, cancelled a components contract with SKF, which could result in around 250 people losing their jobs in South Africa.

Ford cancelled a contract with the South African forging company, just a few weeks after strikes hit car parts manufacturers.

Auto manufacturers based out of South Africa resumed after 220,000 metal workers went on strike for almost four weeks.

Manufacturers like Toyota, General Motors and Ford took a hit at their assembly lines.

A month ago, Ford's Regional Head said that the company would think twice before making any further investment in South Africa's most developed economy due to frequent work stoppages.

S.P Metal Forgings from South Africa will discontinue two products that it supplies to SKF, one of the world's largest bearings manufacturers from February, after Ford cancelled its contract.

Marius Croucamp, Spokesman for the Solidarity union said, "It could be a consequence of the strike."

A spokesperson from SKF did not comment about the contract between them and Ford but confirmed that it was a supplier to Ford.

After Toyota and Volkswagen, Ford is the third largest vehicle supplier in South Africa.

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