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  #1  
Old 05-23-2013, 09:30 AM
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Post Ford to cease Australian automaking operations after 90 years

Filed under: Sedan, SUV, Plants/Manufacturing, Ford, Australia



Ford began manufacturing cars in Australia in 1925 with the Model T. In 2016, Ford will stop manufacturing cars Down Under, including the Falcon and the Territory SUV. Ford Australia CEO Bob Graziano has reportedly confirmed the closure of the company's Broadmeadows assembly plant and the Geelong engine plant, both in the state of Victoria. There will be 650 jobs lost at Broadmeadows, 510 sacrificed at Geelong. Of the roughly 3,000 workers the Blue Oval has in Australia, it's said it will try to retain about 1,000 of them at its R&D and product development facilities.

The writing hasn't just been on the wall, it's been a regular item in all the papers and on Ford's bottom line for years. As recently as 2003, Ford sold nearly 75,000 Falcons, but over the next four years, annual sales dropped by something like 10,000 units, and over the last two years, it has sold less than 20,000 per year. It isn't only Ford that has suffered - sales of the other large, locally produced sedan, the Holden Commodore, have also gone over the precipice, triggering the same kind of angst about Holden's continued existence. Ford is the smallest of Australia's local automakers, Holden and Toyota the others, and has posted losses of $AUD141 million last year ($136M US) and $AUD600 million ($580M US) in the past five years. Graziano said the cost of manufacturing is simply too expensive in the country, twice as high as Europe and three times as high as Asia, and there no way to make a business case for staying in the country.

In January 2012, Ford Australia announced it would stay in the country until at least 2016, but by July of the same year, most outside observers were quietly declaring that 2016 would be the last year of Ford Down Under, and even the speculation was making other observers nervous. Ford received money from the Victorian government last year to aid its refresh of the Falcon and Territory, which will continue on schedule for the 2014 model year. A front- and all-wheel-drive sedan on a global platform is predicted to replace the Falcon, with some other SUV expected to replace the Territory. The company says it still intends to expand its lineup in the country.

As for what will replace the employment hole at the factories and the supplier base, no one is quite sure. Ford has said that the employees will receive their entitlements, and workers do have three years to prepare for what's coming. As well, the state and national governments have already committed tens of millions to a fund to assist the employees.Ford to cease Australian automaking operations after 90 years originally appeared on Autoblog on Thu, 23 May 2013 08:01:00 EST. Please see our terms for use of feeds.


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Old 05-23-2013, 09:55 AM
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Quote:
Graziano said the cost of manufacturing is simply too expensive in the country, twice as high as Europe and three times as high as Asia, and there no way to make a business case for staying in the country.
Key words here. At some point, all manufacturing (maybe not final assembly) will be either CHI-COM or SE ASIA (or INDIA).
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Old 05-23-2013, 01:04 PM
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Wake up, everyone. We're next. Americans never supported American products when foreign offerings are cheaper. Consequently, nothing is made in the USA any more.

I don't blame the industry because they follow the market. If you want Communist Chinese cars, Ford & GM are already there to make one for you. If you choose to buy foreign products, don't cry over the consequences at home. - Dave
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Old 05-23-2013, 01:32 PM
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I think the problem lies more with our present and past government(s) ... ... than large manufacturers. It is simply unrealistic for them to invest in this current anti-business environment.

OBAMA CARE put the final lid on it.

After all, we have the best government money can buy...
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Old 05-23-2013, 02:10 PM
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The problem isn't with industry OR governments. Every time you spend a buck, you're casting your support.

I've been waiting for our government to come out and say, "BUY AMERICAN." Nope, it's a free enterprise system in a global economy.

When 300,000,000 Americans spend their money, they freely buy Communist Chinese and Asian products, with reckless abandon. The US government MUST NOT interfere.

I look in university, hospital, military base parking lots and all along the east and west US coasts. Not only are they FILLED with foreign cars but the bone yards are too. Domestic car parts are impossible to find at a decent price because there are none. - Dave
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Old 05-23-2013, 03:15 PM
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Well Dave,

It is the government, NAFTA for starters. And many industries were subsidized to move off-shore. It is a fact. This government is inept and corrupt. I surely couldn't afford or desire to build a manufacturing assembly here. Too many government entities robbing you blind.

As for automobiles, most ASIAN and EUROPEAN cars are assembled here while FORD and GM went to MEXICO.

As for buying CHI-COM, it is about all that is available readily unless you want to spend countless hours on the net. Retailers are there to make a buck, not worry about their customer base.
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Old 05-23-2013, 05:06 PM
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You know I can understand how you guys feel I see it up here in Canada . The group of guys I chum with in the local car club pretty well all drive imports and joke with me . My answer is I believe strongly in supporting the North American market and not buying off shore . I buy FORD and only FORD . I totally disagree with GM being bailed out and being allowed to use that money to set-up in china and other countries. That should have been a STIPULATION in the hand-out that ALL money be reinvested in GM in North America for jobs HERE !!!!! This upsets me !!!!!!!
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Old 05-23-2013, 06:47 PM
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Gentlemen, do you know what the production numbers were for China vs. North America last year? Yes, I will include Mexico because when you see the REAL stat's, Mexico is a drop in the bucket.

I want to know how many cars GM and Ford made in both places. I think you will both be astounded. Then you will realize where the corporate profits come from.

Again, when you buy anything, corporations want to be there to produce what you are buying. - Dave
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Old 05-23-2013, 07:49 PM
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Here's a hint: China expects to hit 20,800,000 cars this year alone.

I purposely included the Japanese manufacturers in the North American production numbers.

Even though China doesn't have the roads, they have outsold NA for many years straight. BTW, the last auto show in NY featured a CHINESE car. They're here. - Dave
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Old 05-23-2013, 11:01 PM
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Unfortunately - in my new 4X4 Ford Ranger (which have been discontinued here in the US) - the V6 engine was made in Germany and the transmission in France. All installed and built here in Missouri but still......

I agree on the bail-outs Ian.

Eric
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