Ford has rocked the auto industry here by announcing the closure of its two Victorian manufacturing plants.
From 2016, Ford will become an importer only of vehicles into Australia.
Ford says its presence in Australia will remain significant – with 1500 team members, more than 200 dealers nationwide and a continued strong commitment to supporting the communities in which the company operates.
Ford will proceed with plans to launch updated versions of the Falcon and Territory in 2014, as well as offering other ‘world-class products’, such as the Fiesta, Focus, Ranger and Kuga.
“The company also will strengthen its product lineup even further with a 30% increase in the number of new vehicles offered to Australian and New Zealand customers by 2016,” says Clancy.
Ford says that it is transforming its Australian business by accelerating the introduction of new products for Australian customers, enhancing the sales and service experience, and improving its business efficiency and profitability.
The decision to cease local manufacturing was driven by increasingly challenging market conditions, says Ford – including market fragmentation and the high cost of manufacturing.
Ford losses in Australia in the last five years have totalled approximately A$600 million.
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 claim 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.
Australia is currently one of four product development hubs for Ford globally. Recently, the Australian team has been responsible for designing, engineering and testing global vehicles, including the Ford Ranger and Ford Figo, and will continue this expertise.
Today, Ford has more than 1000 team members in product development in Australia, giving the company what it claims as “more designers and engineers than any other auto company in Australia.”
“Our customers will buy and service Ford vehicles through the same great dealers we have throughout the country today, and we will continue to support the communities in which we operate,” said Bob Graziano, MD of Ford Australia.
“Australia has annual sales of approximately 1.1 million new vehicles, and customers have access to more than 65 brands and 365 models available for sale. This makes Australia one of the most competitive and crowded automotive markets in the world.
“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” said Graziano.
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