Ford To Close Australian Plants And Become An Import Only Brand: Reports

Getty/Cameron Spencer

After receiving around $1.1 billion in government assistance over the past 12 years, Ford is expected to announce at a press conference this morning that it will shut its car plants in Melbourne and Geelong in 2016, causing the loss of thousands of jobs, according to reports.

Sources told News Limited the company will become an import-only brand in Australia.

A press conference at the company’s Melbourne headquarters is scheduled for 10:45am.

Ford first began making cars in Australia in 1925, according to the ABC, back when it produced the The Australian Financial Review is reporting the closures will cost 3000 jobs.

The fin also said sources confirmed the plants would shut after 2016.

Ford Australia posted a loss of $290 million last year as sales of its flagship Falcon sedan fell by 36%.

In July last year, six months after Julia Gillard gave Ford a further $34 million in assistance, The government said it would not bailout Ford again after the car maker said it would cut 440 jobs and reduce production by about a third from November of that year, according to the Fin.

More to come.

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.