JOHANNESBURG, NOV. 24 -- Ford Motor Co. today completed a 10-month process of disinvestment from South Africa with the creation of a trust fund for local employes, the company said.
The move ended 61 years of direct Ford activity in South Africa. But under terms of the accord, Ford automobiles and parts will continue to be sold.
Ford has had a 42 percent interest in the South African Motor Corp., known as Samcor. Under the agreement, the giant U.S. auto maker will donate 24 percent to Samcor employes and sell the remaining 18 percent to Anglo American Corp., a gold-mining conglomerate that currently owns 58 percent of SAMCOR.
"For 10 months, Ford Motor Co. has been consulting with interested parties with regard to the transfer of Ford Canada's equity in the South African Motor Corp.," Anglo American said in a statement. "Samcor's relationship with Ford will remain a close one as Ford will continue to supply vehicles, components, service parts, management and technical equipment as well as licensing the use of the Ford trademark."
The employe trust will be administered by workers elected by their peers, Anglo said. Dividends received by the trust will be used for community welfare and development activities.
"Ford has agreed to provide training over a period of five years, primarily at its U.S. and European locations for the purpose of upgrading the skills and qualifications of Samcor's employes, to improve their career development and job opportunities," it said.
More than 100 American companies have withdrawn from South Africa over the past two years, including General Motors Corp., IBM Corp., Coca-Cola Co. and Eastman Kodak Co.