Ford pulling out of Australia

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Swifty

Swifty

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Melbourne, Australia.
Announced yesterday that Ford will cease producing cars in Australia in 2016.
Rising cost have made it uneconomic to make cars here, beaten by lower wages in other countries. My home state of Victoria is the base for the Ford engine plant and the assembly plant.

Another nail in the coffin for manufacturing here, only left with Toyota and GMH making cars now. Although 1200 people will lose their jobs directly, it will have a flow on effect with component suppliers. Victoria and South Australia were once the main players in automotive production, but rising costs are putting an end to that.

Although I retired from business 10 years ago, the downturn had already started at that time. Nissan closed while I was still in business (toolmaking) but we managed to survive losing that work and picked up a lot of work from Toyota.

We're turning from a manufacturing country into an importing one.

Paul.
 
I hate to hear that, working in the automotive industry myself (in USA). I do my best to buy American when at all possible. Many people get lured in by lower price. It has been my experience that you ALWAYS get what you pay for. Whether it be there in Australia or here in USA, we the people must support ourselves by purchasing items made in our own home. Support America, buy American. Support Australia, buy Australian. Now don't misunderstand me, I have no ill will at all towards Chinese, Taiwanese, Bangladeshian, Indian or where ever else stuff comes from. I just think people should support themselves, their families, their neighbors and their countrymen first by buying from within. Want the money to stay here? Spend it here.

When the company I work for started a business in China, they had to build a power plant because the area had no electricity. As a skilled tradesman I don't want to compete with that, some one who lives in a thatch or mud hut. If we do, we'll soon live in thatch or mud huts as well.

I hope another manufacturer steps in to fill the void. Maybe Chevy will step up production at the loss of Ford sales.

Any who, I don't mean to start a fire but people have to support themselves. Don't get me wrong, I'm not against trade. Just shop local first, whether your in USA, Australia, UK, Germany or any where there are skilled trades and a decent standard of living.
 
I don't think Holden will be far behind them, there is already talk of off shore manufacturing.

People will buy there KIA's, Sangyongs, etc, then complain latter there is no quality in cars, but they will then have no choice because the quality ones will be long gone.


Dave
 
Bad management. The trend in Oz. for some time has been towards small economical transport, particularly deisels, & neither of the big 2 cottoned on early enough.
Aussies arent buying Chinese vehicals. Plenty of EU though. VW, Peugeot. Mercedes etc. Damn good cars.
 
They won't be bringing the Mustang in... it's a Ford.
 
I think what Ford decided was inevitable given the global market and the very, very, high local costs (and profit margins), and Holden won't be too far behind I suspect, but it's such a shame, and will hit Geelong especially badly. I really feel for the guys who have spent many years working there, and may not have good prospects down the track. I just wonder though, how well the fat cats at Ford have done themselves over the last several years, given it's been a downward trend for at least a decade? If it's like most companies these days, it's rape and pillage to pay obscene bonuses just for turning up to work occasionally, never performance based as that would be too unfair in a downturn. If I had to pick only a single thing wrong with business in Australia, that would be it!

cheers, Ian
 
I brought a 2005 Mustang GT across to NZ from the US, brilliant car and extremely well made, very solid..
 
The Chrysler/Mitsubishi factory where I did my apprenticeship closed down about five or six years ago. Like you say, it was not just the thousand or more jobs at the factory that went, but all the small parts manufacturers and suppliers shut down too. It's too bad. My two brothers did their apprenticeships there too, and the old man worked there 28 years. Just the last remnants of the building left today. Lot of skills were lost when it closed, skills this country will probably never get back as we become a 'service economy' all working at flipping burgers for each other.
 
jwcnc1911 said:
Many people get lured in by lower price.
Click to expand...

True, but just as many need their ego boosted by having a European car sitting in their driveway. We call it the "Cultural Cringe" here in Oz. The Aussie made Fords and Holdens are very good cars. Sure they aren't as good as a Merc or BMW, but they cost half or less and they keep Australians in jobs. Next time I hear a Euro-car owner complaining about the number of people on welfare, I'll be sure to point out to him that his choice of vehicle helped put a few people out of work.
 
I tend to agree wit the "Buy <Insert your country here>" sentiment. However, it isn't as easy to do that as people may think. Here is why:

I live in the USA, and I am not sure how much this argument applies in other countries. In this country, most of the cost of a car is made up of components that come from only a few hundred miles away. In other words, if I spend $20k on a vehicle, most of that $20k was used to buy parts and materials from suppliers in the same region.

Now, I have two Chrysler products in the driveway. Both cars were assembled in Canada. I would have done more economic good in my region if I had bought a Toyota made in the plant 100 miles south of me. (Indiana)

If you are after the economic impact, it's not about the brand, it is about the people who got paid to make the product you bought.
 
jack620 said:
True, but just as many need their ego boosted by having a European car sitting in their driveway. We call it the "Cultural Cringe" here in Oz. The Aussie made Fords and Holdens are very good cars. Sure they aren't as good as a Merc or BMW, but they cost half or less and they keep Australians in jobs. Next time I hear a Euro-car owner complaining about the number of people on welfare, I'll be sure to point out to him that his choice of vehicle helped put a few people out of work.
Click to expand...

Exactly my point jack, buy local. If it cost less then all the better. I wasn't talking about higher priced "luxury" items. I'm talking about lead painted Chinese $0.99 "bargains". I personally own 2 as much American made as possible vehicles. My Chevy sonic is made in Lake Orion michigan versus the comparable ford focus made in Mexico. To my understanding the Tahoe is made in Arlington, Texas.
 
jwcnc1911 said:
They won't be bringing the Mustang in... it's a Ford.
Click to expand...

Ford is only stopping manufacturing in Australia, I would assume that Ford vehicles will still be marketed here. The demand for the brand name will always be there, it is part of our culture as is your's.

Very bad for our workers losing jobs and businesses losing out as well
.
If Ford brings in cars from elsewhere that is a bonus from wherever that may be.

Prime example is Chrysler, years ago they stopped manufacturing here, The demand remained so now Australia imports from the USA, the 300C is very popular here, great quality and reasonable price, Jeep is also another one, they are a dime a dozen on our roads, Not too sure but I think Jeep is Chrysler anyway.
 
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It is a sad day for manufacturing and industry, and for all the families whose lives depend on on the jobs that will vanish. As many as 2,000 skilled workers will now be blowing their redundancies on lawnmowing franchises, etc., and the Jims mob must be expecting a tidal wave of applications.

What makes me angry is that Ford in Australia has received billions of dollars in government subsidies over recent years, and has blown the lot on stupid design decisions. When the Territory was one of the best designed cars in Australia, ideally suited to our conditions but crippled in the market by a bad engine choice, why did it take them YEARS to bring in the diesel that should have been there in the first place? When the downsizing market moved away from Falcon, why not build a Mondeo-platform model instead?

There are just so many dreadful taxis that the market can bear. The horrible experience of Falcon taxis - especially the station wagons - surely influenced the brand as well.

I was never a Ford man, but I'm very sad to see them leaving.
 
People have mentioned that Holden will go the same way.... I believe it is already happening.
The very popular Holden Cruze is a Chevrolet Cruze, and produced in South Korea.
The as-yet-unreleased Commodore VF is, as far as I understand, a re-badged Chevrolet SS.
I don't know if these will be imported with minor cosmetic tweaks done, or whether they'll be manufactured locally, but the design was definitely done offshore.
 
I believe that the government will continue to pour in money to subsidise Ford until they close. Then they will have to pour money into retraining and helping the employees that will lose their jobs. I feel sorry for the workers over 50, they seem to be overlooked by employers these days, it will be very hard for them to get jobs.

Paul.
 
rcfreak177 said:
Ford is only stopping manufacturing in Australia, I would assume that Ford vehicles will still be marketed here. The demand for the brand name will always be there, it is part of our culture as is your's.

Very bad for our workers losing jobs and businesses losing out as well
.
If Ford brings in cars from elsewhere that is a bonus from wherever that may be.

Prime example is Chrysler, years ago they stopped manufacturing here, The demand remained so now Australia imports from the USA, the 300C is very popular here, great quality and reasonable price, Jeep is also another one, they are a dime a dozen on our roads, Not too sure but I think Jeep is Chrysler anyway.
Click to expand...


Duh. I didn't consider importing them. Just that they would not be made there.
 
When I had the pleasure of going to Sheperton (NW of Melbourne) in 1990 to do some work for my friend Burt I had the pleasure of riding in his brand new, fresh off the lot company car. Other than the steering being on the wrong side, his new little FALCON did quite well. ;D

I tried to explain that Falcons had come and gone back in the states but I don't know if he bought the concept or not!
 
Davo J said:
I don't think Holden will be far behind them, there is already talk of off shore manufacturing.

People will buy there KIA's, Sangyongs, etc, then complain latter there is no quality in cars, but they will then have no choice because the quality ones will be long gone.


Dave
Click to expand...

Offshoring has another affect many may not have realized... It has driven the quality of USA made products down as they try to compete. In more ways than one.

Local manufacturers, in order to compete and be profitable, are cutting corners, trying to find cheaper ways of doing things. Most notably is in material quality, and in quantity of product.

Everything from the (lack of) rigidity in Kennedy tool boxes these days (compared to the bullet proof one in my garage that I've had for over a quarter century), to socks that are so thin you can see through them and they wear out withing half a dozen washes, to tricky packaging that makes product look bigger while it's really smaller, to stinkin' water bottles that have such thin plastic half of them can't hold themselves up and caps that are so small they don't seal well (ask my why I'm glad my 7D is weather resistant!!) and on and on and on.
 
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