By Nqobile Dludla

JOHANNESBURG, Aug 28 (Reuters) - Ford Motor's ( F )

South African unit plans to lay off more than 470 employees as

it seeks to adjust production capacity to match current and

future market demands, the South African Solidarity union said

on Thursday.

Ford has sent an official notice to the union and others,

notifying them of its intention, Solidarity said in a statement.

The jobs affected are 391 operator positions in Silverton

car assembly plant in Pretoria, 73 at Struandale engine plant in

Gqeberha and 10 administrative roles, the union said.

Ford Motor Company ( F ) of Southern Africa confirmed the layoffs,

saying in a statement that it was making necessary adjustments

to its manufacturing operations in both plants.

"These changes are part of our ongoing efforts to

optimise production and respond to evolving market demands,"

Ford added.

Economic pressures, international political uncertainties,

and the government's unfavourable policies are making the

industry increasingly less competitive, Willie Venter, deputy

general secretary of Solidarity said.

"When an automotive giant like Ford takes such drastic

steps, it is a warning to the entire industry. We fear that

further retrenchments in this industry may be inevitable if

conditions do not improve quickly," Venter said.

"Without serious intervention and economic reform from our

government, our country will have to endure even more job

losses."

South Africa's automotive industry employs 115,000 people

directly, with over 80,000 in component manufacturing alone. Low

domestic sales of locally made cars, an influx of imports and

low levels of local content have led to 12 company closures and

over 4,000 job losses in the South African motor and parts

industry over two years, the trade minister said earlier this

month.

Toyota South Africa's CEO told Reuters this month that the

big seven car companies manufacturing in South Africa including

Ford, Volkswagen and Mercedes-Benz, have

sent a policy recommendation document to the trade minister on

how to support and protect the local industry.