Wednesday, May 22, 2013

Inevitable to close down Ford

from w
I don't think people are surprised about the decision to shut down Ford because it is just not economical to continue production at such losses.  People are buying cheaper products from overseas and that is the trend in so many ways in Australia.  Losing jobs in Geelong is a very uncomfortable truth of course because where are the men and women going to find replacement jobs?

Announced today:

From Geelong Advertiser
Ford to shut Geelong plant
  |  May 23rd, 2013

Struggling car-maker Ford is set to make an announcement about its plants this morning.
FORD will stop manufacturing in Geelong, and at its other Australia operations, by October 2016 with the loss of 1200 jobs.
The decision means 510 jobs will go at the Geelong engine plant.
However, the product engineering, research and development and the Lara testing ground will continue to operate, maintaining 470 jobs.
Ford Australia President and CEO Bob Graziano said the company made a loss of $141 million after tax in the last financial year, with a loss of $600 million over the last five years.

Your Say
"Sadly been on the cards for some time but now it's official I think everyone who has made the choice to buy an imported vehicle when a local produced one is available need to feel a tinge of guilt. If you cannot support your own country's producers this is the result. Why do the govt need to help the workers who lose their jobs to find new jobs - would it not be a moral obligation of Ford HQ to meet this, if only to partially repay the govt support they have received over the years. "

Mr Graziano said all entitlements would be protected for the  1200 employees whose jobs are affected, and the company will work through the next three years to provide support.
 Mr Graziano said the costs of manufacturing cars in Australia was uncompetitive.

``Manufacturing is not viable for Ford in the long term,'' he said in Broadmeadows.
Ford Australia employs more than 3,500 people at its manufacturing plants at Broadmeadows, in Melbourne's north, and Geelong.
In January last year, the Federal Government contributed $34 million to Ford's $103 million production upgrade, and the Victorian government an unspecified amount. 

At the time the company said the upgrade would mean the Territory and Falcon models would continue to be made in Victoria until 2016.

The reduced demand for large cars was a factor in the company's decision, Mr Graziano said.
``There's been a significant change in terms of the total number of vehicles sold in the large car segment,'' he said.
The company would still roll out the new models of the Falcon and Territory next year but production would cease in October 2016, Mr Graziano said.
Ford would maintain a presence in Australia beyond that date.
``Ford will remain a significant employer in Australia, with more than 1500 team members, as will our network of more than 200 dealers around the country,'' he said.
Mr Graziano said despite efforts to restructure the business, locally made products continued to be unprofitable while imported products were profitable.
``Our cost structure remained uncompetitive ... it is double that of Europe and four times that of Ford in Asia,'' he said.
Mr Graziano said the company had made aggressive assumptions about possible future government car industry support and lower labour costs, which he did not think would be acceptable by Australians and would not have made the business profitable.
``We did not leave any stone unturned but even with these assumptions the business case did not stack up,'' he said.
Mr Graziano said around 650 jobs would be lost in Broadmeadows, while 510 positions would go at Geelong.


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