The closure of Ford Australia’s Geelong and Broadmeadows manufacturing plants in 2016 is another warning for Australian manufacturing says the Society of Automotive Engineers – Australasia.
Society executive director Geoff Pearson welcomed Ford’s continued commitment to the 1000-strong Australian-based product development team.
“This Australian team was responsible for designing, engineering and testing global vehicles, including the Ford Ranger and Ford Figo,” says Pearson.
“The SAE-A welcomes the news that these Australian designers and engineers will continue their work here in one of Ford’s four global product development hubs.
“However, we are disappointed that Ford is choosing to discontinue its manufacturing operations here in Australia. Among the 1200 jobs that may be lost when local Ford manufacturing stops, are those of the skilled technicians and engineers that work on the production lines. There will be similar impacts on those businesses that supply Ford manufacturing plants.
“All Australian manufacturing is challenged by high costs. Low labour and production costs, and high volume production in sophisticated overseas plants, have made Australia an export target. Together with the high Australian dollar – this has resulted in the diversity of 65 brands of vehicles and 365 models in an Australian market of only one million vehicle sales a year.
“While local Ford design and engineering will continue here, Ford vehicle exports remain minimal. To compete in manufacturing internationally, Australian businesses need to adopt best practice processes, systems and technologies.
“Automotive manufacturing is among the most complex types of production bringing thousands of complex fabricated components, electronic and hydraulic systems, and comfort and convenience interior fittings together to make a single self propelled mobile unit.
“The society is concerned that such a large number of experienced production people may be lost to Australian industry if other manufacturers do not expand operations, or new enterprises open.
“Reducing costs through the application of state-of-the-art manufacturing technologies, and an export focus, must be critical objectives for Australian manufacturers,” says Pearson.
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