Ford Australia managed to lose a whopping $600 million in the last five years.
This year’s loss was $141 million, Ford Australia boss Bob Graziano said this morning.
They recognise this can’t go on.
It’s going to be shutting its production operations at its Broadmeadows and Geelong plants in October 2016.
It’ll mean the loss of around 1200 jobs – 650 at Broadmeadows, and 510 at Geelong.
The company will no longer make the Falcon, its iconic Australian car, after production ceases in 2016.
Graziano said the company “modelled pretty aggressively” some of the options for keeping manufacturing going – around twice the normal effort for something like this – but “we still couldn’t get it to box”.
“These are never easy decisions to make and I am really proud of the work the team has done in looking for alternatives,” Graziano said.
“It was something I committed to employees and it was something I wanted to do personally.”
He said Ford would be maintaining a significant presence in Australia of around 1500 people, including its product development global centre of excellence.
The final decision to wind up manufacturing was just made last night, he said.
Here are the key points from Ford’s statement this morning:
- Ford 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
- To better position the company to compete in a highly fragmented and competitive market, Ford will cease local manufacturing in October 2016. All entitlements are protected for the 1200 employees whose jobs are affected, and the company will work through the next three years to provide support
- Ford will proceed with plans to launch updated versions of the Falcon, Falcon Ute and Territory in 2014, as well as offering other world-class products, such as the Ford Kuga, Ranger and Focus. The company will also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016
- Ford’s 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
The full statement from Ford is available here.
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