Ford of Australia has confirmed that it will be closing two of it’s production plants in 2016
Troubled Ford of Australia has unfortunately confirmed that it will be closing two of it’s factories in 2016. The company announced that it is going to stop building cars in the country from October of 2016. The move was signed off last month and will see the company’s production plant in Broadmeadows and it’s engine plant in Geelong close, losing around 1160 jobs altogether.
The company has claimed the strength of the Australian dollar for these happenings, with Bob Graziano, the president of Ford of Australia explaining, our costs are around double of Europe’s and almost four times Ford in Asia.
Trading conditions currently are tough in the country, as the mineral wealth has bolstered the strength of the dollar and driven up costs of cars built locally in comparison to models that are imported. The sale of large saloons has fallen rather rapidly also, with buyers looking to downsize their vehicles, or switching to SUVs. The best selling car at the moment in Australia is the Mazda3.
This news came the same week that the Ford of Europe Chief issued a rallying call for European Policy makers
This news came the same week that Stephen Odell, the Ford of Europe chief issued a rallying call for European Policy makers to improve the trading conditions in the area, to help reduce manufacturing costs and to try and boost sales.
Ford also announced however that sales in the United States are still booming, they also confirmed that the company will be building an extra 200,000 vehicles in the United States to meet the increased demand from customers.
Ford has been producing cars in Australia since the construction of the Model T in 1925. Ford’s Australian arm produced around 37,000 vehicles but lost around £93,000,000. In the past five years Ford of Australia has lost around £386,000,000.
The Ford Falcon and the Falcon based Territory SUV will be receiving one final facelift, which is being paid for with help from the government, before the plants are shut.
Although the company will stop producing cars in Australia, it plans to expand it’s line up by 30% by 2016, including adding the EcoSport to the range. This should also essentially mean that the famous Holden Vs Ford rivalry that is played out in the V8 Supercars series will remain hotly contested. Holden has promised to remain producing cars in the country until at least 2022.
The Ford workforce in Australia will apparently be helped to find new jobs, with the government said to be contributing around £19,000,000, with the state of Victoria, where the plants are located adding just under £6,000,000. Though Julian Gillard, who is the Australian Prime Minister has also called on Ford to contribute to the fund.