*Breaking News* Ford Australia to shut October 2016

[poita]

A sad day for the Australian Motoring industry.

Live stream here http://www.abc.net.au/news/2011-05-03/abc-news-24-stream/167392

Or on ABC24


http://www.news.com.au/business/ford-australia-to-shut-broadmeadows-car-factory-geelong-engine-plant/story-e6frfm1i-1226648895882


FORD Australia is set to drop a bombshell on the car industry this morning, announcing the closure of its Broadmeadows car factory and Geelong engine plant in October 2016, a move that will cost at least 1500 people their jobs.
The struggling car-maker has sent out a media alert about an impending announcement later this morning, believed to be at 10.45am.
Information given to Ford factory workers, who were told the news this morning, suggests that Ford’s manufacturing operations will shut down in October 2016.
The decision is likely to lead to the loss of at least 1500 jobs; about 750 at the Geelong engine plant and 750 at the Broadmeadows car assembly line.
Ford will however keep the 1100 jobs in design and engineering, based at the Broadmeadows site, although those staff will now work solely on Ford’s foreign vehicles.
The move means Ford will not go ahead with the updated versions of the new Falcon Sedan and Territory SUV next year as planned.
Ford Australia has been given $1.1 billion in state and Federal Government assistance since 2000.
Over the same period, Ford says it has invested $3.3 billion in design and engineering of future models.
Ford was due to release its financial results today but News Limited has been told the media conference is about "more than that".
Confidential sources say that Ford Australia will become an import-only brand. It is unclear when the factories will close but Ford was due to introduce a facelifted Falcon and Territory next year.
Journalists at the launch of the new Holden Commodore in Canberra were sent secret text messages by Ford Australia staff in the early hours of this morning, before they were about to drive the new model on public roads for the first time. Ford claims the timing is a coincidence.
Ford Falcon sales have fallen to their lowest since the Broadmeadows factory opened in 1960, and Ford’s overall sales in Australia last year were lower than they were 20 years ago.
Ford Australia is refusing to take calls from media until the announcement. News Limited will update the story as more information comes to hand.
The big three car companies employ 17,000 people directly in Australia, while they have 55,000 employees when suppliers are included.
In Victoria, the car industry employs about 25,000 people.
Holden, Ford and Toyota have claimed they spend $2.25 billion in Victoria every year buying parts from local suppliers.

Ford is the third largest auto-manufacturer in Australia and employs 3000 people.
The Broadmeadows plant in Melbourne’s north manufactures the Falcon sedan and utility as well as the Ford Territory SUV.
Acting Industry Minister Craig Emerson promised the government would help sacked Ford workers find new jobs as Treasurer Wayne Swan said manufacturing was under pressure from the high dollar.
"The Government is aware of reports that Ford is making a significant announcement about the future of its manufacturing operations,'' Dr Emerson said.
"In these situations our top priority is ensuring workers and their families in regional communities are looked after. 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.''
"The Government will have more to say when Ford has made its announcement. But I can assure you making sure the company's workforce and regional communities are looked after will be our top priority.''
Dr Emerson has called a press conference in Sydney for 11.30am to give a detailed response.
Mr Swan said economy was going through "an important transition'' and the high dollar was causing challenges for manufacturing.
"The government will do everything within our power to support workers and local communities that may be affected by a decision taken by Ford,'' Mr Swan said.
Victorian Opposition Leader Daniel Andrews said that while he was waiting to hear the detail of Ford’s announcement, it appeared the news would be bad for workers and their families.
"The news that Ford is closing at Geelong and Broadmeadows is absolutely devastating for those communities and the Victorian economy," he said.
"Thousands of workers at those plants and workers in related industries will not only lose their jobs but face ongoing unemployment - unless the Napthine Government produces a jobs plan."


Read more: http://www.news.com.au/business/ford-australia-to-shut-broadmeadows-car-factory-geelong-engine-plant/story-e6frfm1i-1226648895882#ixzz2U4Xhpc1j

[hazrd]

Not cool

V8 Supercars 2016:
Erebus v Nissan v Holden

V8 Supercars 2017:
Erebus v Nissan

:o

[poita]

Chrysler have been confirmed for 2014, so Chrysler v Erebus v Nissan

[stevedee3]

Not good :(

[scamp]

been a long time coming , our government cannot keep on propping up the car industry whilst they make profits o/seas and lose bucketloads over here. If you saw some of the benefits over the wages the staff at gmh are entitled to it would make your head spin. The industry has had too much union involvement since the 60's which has crippled the aus motor industry.It is a sad day for all concerned but it's been on the books for years !

[kabel]

Sad day indeed.
But the brand will survive without having a locally made car to sell.
Unfortunately the Falcon is a great car that the market does not seem to want to buy anymore.

[Milesy]

If you saw some of the benefits over the wages the staff at gmh are entitled to it would make your head spin!

As a current Holden employee can I suggest that you get your facts right before making such bold statements. While we do have access to a very attractive lease scheme (paid in after tax dollars!) and discounted pricing on new cars, the fact is you can get substantially more money in other companies. So from a total remuneration package perspective, while the benefits close the gap they are not the huge perk you think they are.

[Blip]

Manufacturing in this country has been dying for more than 10 years now. Compared to other countries our remuneration packages are very high compared to many other countries which has contributed to the manufacturing downfall, I'm not saying we all should take a pay cut but this is what happens when wages are high - you become uncompetitive in the global marketplace. There are so many different forces at work against Ford and all of the auto industry in this country, high wages, unions, carbon tax, land tax, this tax, that tax, free trade agreements, etc

It's OK for o/s companies to import cars here with no tariff imposed but if Australian car companies were to say export to Thailand - the Aussie company would have a 60% import tax imposed on the goods... How is the Australian company meant to compete with that when already our Government allow all these other companies to be import tax free into our market?

I think unlike Holden and Toyota - Ford did not have an export plan but that being said I seriously don't think Ford cars made in Australia would have been competitive in the global market because largely they are crap.

Correct me if I'm wrong as this is just what I have noticed - I don't work in the industry

[hazrd]

Agree with the above comments regarding remuneration over benefits.

I work for a major automotive company (not Ford or Holden. This one is import only), and can see the benefits that are had here. The pay isn't as high as some would expect, but they do look after their staff in the means of a similar type of lease program and discounted new cars as per Milsey's comment. Yes there are remunerations, but that entirely depends on your own performance for the year. The bonus isnt handed to you on a silver platter ;)

I'm not saying that Ford weren't struggling in the market, but with the Gov't bailing them out, they could have re-thought their strategy and made some better decisions. It is just unfortunate that the decisions they have made has lead them to this. I was never a massive fan of the Falcon until the FG XR6 was released. Its a shame that this will be the last.

At least the Focus ST will still be around ;)

[scamp]

Hey mate , not trying to upset you on this , but as the other comments say , it is a problem with high wages and benefits that staying on a world market we are going to struggle to compete . At the same time though , how many companies already have a paid maternity, paternity & parental leave scheme of up to 14weeks ( source aus govt ) since 2008 , or have a 22% pay rise scheme by 2014 including a $1750 hardship payment in the 1st year plus a further $1000 in the following two years. All this plus the amount of money being given from our government
THE FUNDING BREAKDOWN

From the Federal Government

$1.5bn - Automotive Assistance 2001 to 2010 Automotive Competitive and Investment Scheme

$12.5m - 2001 Strategic Investment Incentive for the training of automotive industry employees and the development of industry relevant technology (Engine Plant)

$6.7m - 2006 Safety Enhancement Project

$150m - 2011 to 2012 Automotive Transformation Scheme

$189m - 2008 to 2012 Green Car Innovation Fund Grants

$3m - 2010 to 2011 Automotive Supply Chain Development Program

$1,864,107,018 - Subtotal automotive programs assistance

$215m - Not yet paid. 2012 New Generation Co-Investment Grant.

$2,079,107,018 - Total Automotive Programs Assistance

$78,640,619 - General assistance 2001 to 2012 under Tradex scheme where importers gain exemption on customs duties and GST on goods to be re-exported.

$17,199,894 - Vocational education training programs.

$2,174,947,53 - Total of benefits paid, gained or pledged January 1, 2001, to December 31, 2012.

From the South Australian Government

$30 million - Attracting production of Holden Cruze to Elizabeth.

$5 million - Labour adjustment following the downsizing of vehicle operations (closure of third shift).

$1 million - GM Holden secondary employment activity to assist workers to find employment while on reduced shifts.

$2.2 million - Safety enhancement project.

$38.2m - Total grants paid

$50 million - pledged but not paid for the new generation vehicle. Due in 2016-17 and 2017-18 financial years.

$88.2m - Total paid or pledged.


As to your benefits as a holden employee at the plant http://www.fwc.gov.au/awards/tracee/agreements/pdf/AG838750-2.pdf
All I can say is your benefits scheme may not be the best out there but it is certainly better than anything I've ever had and it's certainly better than the electronic assembly industry ever offered before it went under. Once again no offence mate and I am certainly not asking holden employees to take a pay cut but it's just the sad fact that Australian manufacturing in general is going to suffer on the global market as long as we have a high living standard. I for one am not happy to see ford go under and I am worried at the current state of affairs with aussie made cars and their future especially for the workers and their families.I strongly believe the biggest problem has been the head honchos of these companies who seem to have relied on the aust marketplaces love affair with the large family car and seem to have left it too late to diversify the cars they make to go with the Australian public's move away from this . If the oil crisis of the 70's didn't ring alarm bells and the ever growing emergence of the Asian market and the missed opportunities then what can you say. It's no different than sony who did not believe the lcd revolution in TV's would happen and that their customers would stick
to Trinitron crt TV's. They at least were able to see the error of their ways quick enough ( even posted a we were wrong to the us media statement ) to keep themselves alive for now at least.

[metry]

has been a long time coming. its a shame for the australian automotive industry but our cost of production is too high here. that couples with the strong aussie dollar it makes our cars alot more expensive globally. not to mention australia as a whole has just over 20m people. There are cities in the world with more people in them. our own economy just wasnt big enough to support ford. hopefully holden sees the writing on the wall from this and doesnt follow the same path.

[dutchy]

You think they consider moving production to China or Korea ? Lower costs there.

[nigelh]

My personal feeling it is ford US plan to replace the falcon ect with the cars produced in the US to save themselves.

[Bloodnok]

My personal feeling it is ford US plan to replace the falcon ect with the cars produced in the US to save themselves.

That's already a cert - the 'One Ford' policy means you'll be seeing broadly the same ford vehicles in America, Europe and Asia. While not everything gets sold everywhere, there will be no local models -- only gaps in the range if Ford chooses not to sell a specific model to a specific country. Expect to see the Taurus to replace the Falcon, and the Explorer to replace the Territory. The Falcon Ute won't get a replacement -- there is nothing out there comparable, so ford will be directing you to a Ranger instead. V8 power and RWD layout might continue to be available though -- the next generation mustang has been confirmed as a "One Ford" world car, and will be available in Europe, including in RHD. It'll be up to Ford Australia to decide whether they want to have it available for dealers here or not.

[Shaun]

Sad day for the Automotive Industry and the Ford Brand. Regardless what brand of car you support when a long standing Player and name plate dissapears from the Australian market its not a good sign for others. The worst thing is the domino effect it will
have on the rest of the Industry.

[Milesy]

As to your benefits as a holden employee at the plant http://www.fwc.gov.au/awards/tracee/agreements/pdf/AG838750-2.pdf
All I can say is your benefits scheme may not be the best out there but it is certainly better than anything I've ever had and it's certainly better than the electronic assembly industry ever offered before it went under.

The EBA you refer to only applies to the factory award covered staff and yes due to the strong unionised workforce they have been able to hold the industry to ransom and get ongoing pay rises. For me this has no impact as a non-award covered salaried professional and we have actually had salary freezes in the past few years and have now been transitioned to performance based pay with no guaranteed annual increases. This is what I was referring to. I'm not complaining at all, but I could certainly get much much more money if I moved out of the auto industry, but I have a passion for it and the company I work. It really disappoints me to see so many complaining about how much government assistance the car industry gets and how good a wicket we are on. If Australia is to be prosperous country in the future with relatively low unemployment then we need to be a country that makes something and not just one that digs up material from the ground. Once you lose manufacturing it will be gone forever, and if that is the way we are headed then we are all the poorer for it.

[dutchy]

The worst thing is the domino effect it will have on the rest of the Industry.

Might not totally be the case as some will move on from Ford to another brand, so lets hope that ao. Holden will benefit from this.

[pd-xc-72464118]

Sad news for all the people relying on the jobs but then again, they have been making pretty damn crappy cars for most of their existence. Would be great if they were forced to stop making that hummer with a blue oval, the territory (and nobody else could supply anything like it :) )

Seems somewhat unfair that Holden got funding for the Cruise whilst Ford got, what, more money for their ancient straight 6s?

[Bloodnok]

Sad news for all the people relying on the jobs but then again, they have been making pretty damn crappy cars for most of their existence. Would be great if they were forced to stop making that hummer with a blue oval, the territory (and nobody else could supply anything like it :) )

I think you'll find it's ford-badged replacement (explorer) is even more hummer like...

[kabel]

Sad news for all the people relying on the jobs but then again, they have been making pretty damn crappy cars for most of their existence. Would be great if they were forced to stop making that hummer with a blue oval, the territory (and nobody else could supply anything like it :) )

Seems somewhat unfair that Holden got funding for the Cruise whilst Ford got, what, more money for their ancient straight 6s?
They did both received Government funding.
Holden had to add a small car to the production line as part of that agreement, Ford could of done the same with the Focus.

There is nothing wrong with the Ford in-line 6 either, regardless of its age.It is just about bulletproof.

This has happpened before in Australia, manufacturers getting caught with changing market wishes,changing policies and other external factors (fuel crisis etc.)
The media do not help when they continually bag the Falcon and Commodore and had already written the obituary before the death of either.

Who wants to buy a product that may be in the near future be out of production,......................"Maybe I should steer clear of Ford/Holden and buy a Mazda instead " ?

I cannot see how announcing the closer of manufacture three years out is going to help their cause in any way either
None of it makes any sense really.

At the end of the day do the buyers really consider where the product is made before purchasing?
Most people probably do not even open the bonnet.

Interesting times !

[J]

Seems somewhat unfair that Holden got funding for the Cruise whilst Ford got, what, more money for their ancient straight 6s?

Don't forget the EcoLPi that provides better output than the regular 6 running premium unleaded with much lower emissions and running costs, as well as the Ecoboost that appears to provide slightly lower real world fuel consumption + better handling due to the lighter front end.

[Blip]

on a side note - at least Holden (or GM rather) is trying to do what it can in globalizing their cars. This car looks the beast!! I guess it would mean Aussie R&D gets a boost?? I'm sure it won't be made here thou - thoughts anyone?

http://www.carmagazine.co.uk/News/Search-Results/First-Official-Pictures/Vauxhall-VXR8-GTS-2013-first-pictures-of-Aussie-M5-killer/

[poita]

on a side note - at least Holden (or GM rather) is trying to do what it can in globalizing their cars. This car looks the beast!! I guess it would mean Aussie R&D gets a boost?? I'm sure it won't be made here thou - thoughts anyone?

http://www.carmagazine.co.uk/News/Search-Results/First-Official-Pictures/Vauxhall-VXR8-GTS-2013-first-pictures-of-Aussie-M5-killer/

They have been sending cars to the UK for years now. And you are wrong, they are built here and send over, then re-badged.

Somehow or another they are actually cheaper in the UK than they are here, that's what is going to kill the Aussie car industry.

[Blip]

They have been sending cars to the UK for years now. And you are wrong, they are built here and send over, then re-badged.

Somehow or another they are actually cheaper in the UK than they are here, that's what is going to kill the Aussie car industry.

Well that's a good thing!! (that it is built here) - at least Holden is trying to do something about manufacturing in Oz albeit I don't think its gonna be selling like hotcakes

Sorry piota I don't know much about anything Commonwhore wise

[poita]

Well they had taken 150 deposits before the pricing was even announced for the GTS

So even for a $93k Commodore they are going to sell well.

[Blip]

Daaaam !!! 93k for a commonwhore - I struggle to even part with $50 for a private lappy at the cabaret club

ok back to the topic - go ford focus RS!!!

[Bloodnok]

They have been sending cars to the UK for years now. And you are wrong, they are built here and send over, then re-badged.

Somehow or another they are actually cheaper in the UK than they are here, that's what is going to kill the Aussie car industry.

You can't conclude that directly -- you'd have to work out the difference between the pre-tax prices. It's easy to strip off LCT and GST here, but without knowing what Vauxhall pays for one wholesale, it's not easy to know how much VAT is actually being paid in Britain. I'd suspect Holden make as much margin on the manufacturing of one destined to be a Vauxhall as they do from one that will become an HSV.

Not convinced that's the case with the Chevrolet SS though, that price point is just too damn low...