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:
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. "
Jo
Jo
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.
``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.
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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