Ford closing down

Ford Australia says it will close its Australian manufacturing plants in October 2016, with the loss of hundreds of jobs. Ford president Bob Graziano said approximately 1,200 workers would lose their jobs when the Broadmeadows and Geelong plants were shut down. The killer line;

"Our costs are double that of Europe and nearly four times Ford in Asia," Mr Graziano said.

"The business case simply did not stack up, leading us to the conclusion [that] manufacturing is not viable for Ford in Australia in the long-term."

Unions and Carbon Tax - a costly duo.   UPDATE:  Ch 10 Meet the Press.  Labour costs per Ford vehicle rated at 65%

6 comments

  • After the VF Commodore Holden will stop producing the Commodore.  We’d rather Mazdas or those giant 4WDs.

  • There are three decisions that over the years, doomed Ford Australia.
    Each of these decisions was made by Yanks in Dearborn, against the advice of local Ford executives. They were in sequence, the refusal to position Ford Australia as an integral part of the international operation and to task it with building a large vehicle platform for export worldwide.
    Then in November 2009, it dropped its plans to build the Focus in Australia, despite the clear indications that this market segment (together with the growth of SUVs) was the way to go – witness the success of the Toyota Corolla and Mazda 3.
    Finally, it waited too long to put a diesel into its SUV, the Territory, a great vehicle with only one vice – high urban fuel consumption.
    The Falcon, particularly the ECOLPi LPG version, is the best large sedan for the money in the country, and costs about the same to run as a Mazda 3, but Ford has never marketed it with any flair or imagination.
    It’s simply another example of the Yanks knowing best. Trouble is, it’s Australian workers who are paying the price.

    • We’ve priced our labour out of the market, even with the Govt tipping in millions of taxpayer dollars, Ford cannot make a car here for a competitive price – it doesn’t matter if they are any good or not, they cost too much to make here.
      It isn’t a conspiracy, it is economic reality and it has started to hit home.

    • 17350??…..now that we are back on the Yanks can you give us the run down on the future of that other iconic Yank car company, GM.  As it is a Yank agender according to your chrystal ball, perhaps you made a bad choice buying a ute produced by Holden.

  • Ford in America have an agenda.  There was no way an Aussie car would replace any of theirs.  They want it the other way around.  When was the last time you saw an ad for the Falcon?
     
    The Falcon will be replaced by the Taurus and the Territory will be replaced by an SUV based on the Ford Ranger.
     
    Oh and the updated Falcon due in 2014 will never be replaced – that is the car that will go the way of the 380 which enjoys a good resale value on the second hand market.
     
     

  • Hello 17…
     
    Once again you tell us the Americans are the problem.  
     
    Jacques Nasser (born in Lebanon but raised in Australia) was CEO and President of Ford Motor Company from 1998 – 2001, while Briton Sir Nicholas Scheele was President and Chief Operating Officer of the Ford Motor Company from 2001 until 2005. 
     
     
    Are you 100% certain:  “Each of these decisions was made by Yanks in Dearborn, against the advice of local Ford executives” and “It’s simply another example of the Yanks knowing best”?
     
     
    Is it possible some of the decisions and policies which adversely affected Ford Australia were made by an Australian and a Briton and not, by an American?
     
     
     
     
     

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