none
none

BREAKING NEWS: Ford to shutdown its operation in Australia

31-08-2010
by 
in 
BREAKING NEWS: Ford to shutdown its operation in Australia

Ford Australia has announced it will close its Broadmeadows and Geelong production facilities in October 2016, with at least 1200 jobs to made redundant.

At a press conference in Melbourne today Ford Australia president and CEO Bob Graziano said it was no longer viable for the company to manufacture in Australia.

The cost of manufacturing a vehicle in Australia was twice as much as in Europe and four times the cost of Asia, he said.

"As you know the Australian manufacturing industry has been facing challenging conditions," he said. "In light of that we will cease our manufacturing in October 2016. "Approximately 1200 jobs in Broadmeadows and Geelong will become redundant."

Mr Graziano said the company would continue to manufacture the Falcon, Territory and Falcon Ute during the next three years.

It would also offer other products, such as the Ford Kuga, Ranger and Focus.

“The company will also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016, he said

“Ford’s presence in Australia will remain significant – with 1500 team members, more than 200 dealers nationwide and a continued strong commitment to supporting the communities in which the company operates.”

Mr Graziano said Ford management would continue to work with its workers during the transitional phase.

“This decision was not made lightly, he said. ““We understand the very real impact.”

Ford Australia employs about 3100 people in Broadmeadows, Geelong and its five regional offices.

The company also announced operating losses of $141 million after tax, with total losses of more than $600 million over the past five years. 

"Today's announcement is challenging for the Ford team ... we are confident about Ford's future in Australia," Graziano said.

“Ford vehicles have been part of the automotive landscape in Australia for almost 110 years and we have manufactured here since 1925. We are proud of that history.”

Treasurer Wayne Swan promised the "government will do everything within our power to support workers and local communities that may be affected by a decision taken by Ford".

Acting Industry Minister Craig Emerson said ensuring workers and their families in affected communities were looked after was a "top priority".

"Workers need to be given every opportunity to find new jobs and regional economies and communities need to be assisted in securing new investment and employment opportunities,'' Mr Emerson said.

The locally-produced Ford Falcon has been in sales freefall for the last decade. In 2002, the Falcon sedan and wagon accounted for 54,629 sales locally, while last year that number had dropped to just 14,026.

Related news & editorials

  1. 21.11.2017
    21.11.2017
    by      In
    Darcy Ewing of Kurrupt Kustoms in Albury NSW was running compressed air from a 6-year-old reciprocating piston-style compressor when (in his own words) it virtually “S*** itself!”.
    This left his high-end auto body and customisation shop in real trouble with a total shutdown of all essential... Read More
  2. 21.11.2017
    21.11.2017
    by      In
    If the recent upheavals in Australian manufacturing illustrate one truth, it is the absolute necessity for forward planning, and more to the point, the importance of planning for growth – regardless of a company’s existing size.
    While the ambition to grow a manufacturing operation is one thing,... Read More
  3. 21.11.2017
    21.11.2017
    by      In
    Blockchain technology was invented to make the world’s first crypto-currency, Bitcoin, possible. Traditional currencies rely on intermediaries like governments, banks and clearing houses to guarantee their value and process transactions. Bitcoin uses digital technologies to cut out these middlemen... Read More
  4. 21.11.2017
    21.11.2017
    by      In
    Australian Tank Engineering (ATE Tankers) has been engineering and manufacturing tankers in Australia for nearly two decades. But whereas most vehicle manufacturers have seen sales decline in recent years, ATE has elevated itself through the trend with a transformative mindset that has enabled the... Read More