Major Ford announcement

[fordOwner]

It's like the foreseen prediction for an extinction of a famous Australian animal with a specific death date for the last remaining animal and nothing can be done about it.

Will this mean our falcons will go up in value in the future like the Australian Valiants?

[mcnamg]

Press Release from Ford Website

http://www.ford.com.au/about/newsroo...=1249024395989

Important announcement from Ford Australia
Thu, May 23, 2013
Ford Accelerates Australian Business Transformation
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
MELBOURNE, Australia, 23 May 2013 – Ford Motor Company is transforming its business operations in Australia to provide customers with even more new products, and improved sales and service, while creating a more efficient and profitable business structure.
Ford announced the plan today, including its intention to cease its local manufacturing operations in October 2016. The decision on local manufacturing was driven by increasingly challenging market conditions – including market fragmentation and the high cost of manufacturing. Ford losses in Australia in the last five years have totaled approximately $600 million (AUD).
“All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting edge technology at an affordable cost,” said Bob Graziano, president and CEO of Ford Australia. “Unfortunately, due to challenging market conditions we are unable to do that longer-term while continuing to manufacture locally.”
Support for Employees
Approximately 1200 jobs in Ford’s Broadmeadows and Geelong manufacturing plants will become redundant when manufacturing at those sites ceases in 2016.
All manufacturing employees’ benefits will be provided in line with current agreements. During the next three years, Ford will work with affected employees and their representatives on support arrangements and provide clarity about the closure process.
“We know this announcement is very difficult, especially for our employees,” said Graziano. “Providing support to those in our team whose roles will be affected is a key priority for us during this three-year transition period.”
Future vision for Ford Australia
While the way Ford is structured is changing, Ford’s commitment to Australia remains strong.
“Ford will remain a significant employer in Australia, with more than 1500 team members, as will our network of more than 200 dealers around the country,” said Graziano. “The Australian team’s role as a global centre of excellence for vehicle development also will continue to be an important focus for us.”
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 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 Graziano.
Decision follows comprehensive review process
Given the changing dynamics of the auto industry, a number of business scenarios were reviewed during the past year to determine next steps for Ford’s Australian business.
All viable alternatives were evaluated as part of the process including manufacturing various types and combinations of vehicles for local sale as well as the viability of a significant export program. The scenarios investigated also included varying levels of government support, manufacturing cost reductions and productivity improvements.
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.
More New Products
As part of the transformation, Ford has aggressive plans to introduce even more new products for Australian customers – including a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016. That is in addition to already announced new versions of the Ford Falcon, Falcon Ute and Territory, as well the new Ford Kuga, Ranger and Focus.
“We will be introducing a number of exciting new vehicles and technologies during the next few years that will excite our Australian customers,” said Graziano. “The breadth of our line-up will increase by more than 30 per cent, ensuring we continue to offer our customers an outstanding range of cars, SUVs and light trucks long into the future.”
Upgraded Sales and Service Experience
Ford also is significantly enhancing its approach to the sales and service experience. The company has appointed a dedicated Consumer Experience team to introduce a series of initiatives to provide customers with even better after-sales care.
“We have a range of projects under way to significantly enhance our customer’s experience with Ford,” said Graziano. “This includes one of the only programs in Australia that provides a capped price on all servicing costs for seven years.”
Ford continues to be part of Australian communities
“Ford vehicles have been part of the automotive landscape in Australia for almost 110 years and we have manufactured here since 1925. We are proud of that history. We are proud of our role in Australia and we haven’t made this decision lightly.
“Overall, we are changing, but our commitment to Australia remains strong. We’ll move through this transition and continue to be a vibrant and strong part of the Australian driving experience,” said Graziano.

[Mighty Reds]

FFS Ford give the Falcon what it deserves and send it off with a BANG!!.

[gumbi_18]

Originally Posted by Mighty Reds

FFS Ford give the Falcon what it deserves and send it off with a BANG!!.

This. Finally dust off the GTHO badge and give the Falcon one last hurrah.

[The Snout]

Glad people on here aren't giving Ford a free pass and blaming the buying public for everything. The onus is on a company to bring a product to market, promote it, make it competitively priced/equipped and not least make it relevant to what people want.

Ford have failed to do this on the Australian made products. Even recently they responded to the opposition leader's visit and opinion that Territory was a great car with an attitude that it was just all to hard to bother to export. Ok, sounds like the decision was already made but I found that really negative by Ford.

With a 3 year lead time, hopefully it will give workers time to reskill and make other arrangements.

And I'll buy Australian made after 2016 , Holden or Toyota.

Guess this theory that automotive will collapse if any of the big 3 left will now be tested.

[GT-spec15]

Well said Snout.

I know this is a Ford site and many will get nostalgic and teary eyed, but at the end of the day Ford is a business, and when an arm of a business ceases to be viable, it gets chopped.

Life's a *****.

[BroadyFord]

Graziano confirms ford AU cost structure "double that of Europe".

Shoots down the myth of cheaper wages than Europe/Canada etc people on this forum have been banging on about.

[Brazen]

Originally Posted by BroadyFord

Graziano confirms ford AU cost structure "double that of Europe".

Shoots down the myth of cheaper wages than Europe/Canada etc people on this forum have been banging on about.

He said costs not wages. Costs involve everything like electricity, gas, carbon taxes, red tape, transport etc.

And most manufacturing plants need volume to reduce the cost structure. Im suprised that the cost structure of the Ford AU plant which only made 30,000 cars last is only double the plants which pump out 250,000 cars a year.

[Smoke Pursuit]

Originally Posted by BroadyFord

Graziano confirms ford AU cost structure "double that of Europe".

Shoots down the myth of cheaper wages than Europe/Canada etc people on this forum have been banging on about.

Yes but he said tonight on channel 2 7:30 that the assumption was based on "scale" something I have been saying for a long time. The less cars you build the dearer each car costs, especially from a labour perspective. He went on to say our labour costs are consistent between Europe and Australia but less so in Asia.

[MethodX]

So the Falcon name lasted untill 1971 in America.
1990 in Argentina
2016 in Aus.

Good run really. A lot of history.

[Outbackjack]

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

[GT-spec15]

Originally Posted by Outbackjack

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

What a ridiculously simplistic assessment of the situation.

[2011G6E]

Originally Posted by Outbackjack

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

Never has been, never will be...unless of course people are prepared to live on much smaller wages and live in poverty to help the car makers try and sell an unpopular product.

Big cars are on the way out...people said in in the late seventies, and it proved to be false. People said it in the eighties and nineties, and it was sort of wrong. But it's been downhill this century..."small" cars aren't that small anymore...medium cars are as large inside as "big" cars used to be in Australia. Despite claims to the contrary from enthusiasts, buyers couldn't care less if a car is front wheel or rear wheel drive, as long as it's well equipped and drives nicely and, importantly, is priced sharply.

[Saveme2Jebus]

It aint' over till the fat lady sings and that more than 3 years away. Seems like an incredibly long term announcement for a business. The 2014 updates are still happening too... Surely that means the decision is not final? It's so sad, I love my Territory, It's rear wheel drive it's fantastic on a long country drive and every time I drive anything else (hire car etc) I am reminded just how good my Territory is. I won't be buying anything other than Australian, if they stop making them I'll just stay with what I have for good or buy second hand.

[PHawk]

My GT has a secure place in my garage!!

[GT-spec15]

Originally Posted by Saveme2Jebus

It aint' over till the fat lady sings and that more than 3 years away. Seems like an incredibly long term announcement for a business. The 2014 updates are still happening too... Surely that means the decision is not final?

Incorrect.

It's a very long lead time, which is actually good for workers as it gives them time to make alternative arrangements. Far better than a shock 'overnight' announcement.

That said, Ford will be using the next few years to work towards a 'sales only' business in Australia. That doesn't happen overnight.

[TC200six]

I'm not teary eyed as we knew it would happen one day. Shame though.

[Polyal]

Man..I just have so much anger at Ford NA right now its numbing. If they come out with a GWRD sedan within the next couple of years I will flip out.

[mcnamg]

I wonder how long before Holden makes a similar announcement. I would think that Holden would have to review their options for local manufacture now Ford is going to be out of the picture as they will need to increase the overseas content in their vehicles as local supplier prices will increase quite a bit as they raise costs to cover the loss of Ford business. That's if the local suppliers can survive without Ford.

This is not a good sign for the continued local manufacturing of cars in Australia.

[DanielXR8]

Originally Posted by mcnamg

I wonder how long before Holden makes a similar announcement.This is not a good sign for the continued local manufacturing of cars in Australia.

Holden is hanging in there for a few years at least. Toyota have also announced they have no plans to stop local production:

http://www.caradvice.com.au/232498/h...-announcement/

[2011G6E]

Our "Australian motor industry" for many many decades consisted of bolting together CKD kits from overseas makers...any reason it can't again...?

[GT-spec15]

Originally Posted by 2011G6E

Our "Australian motor industry" for many many decades consisted of bolting together CKD kits from overseas makers...any reason it can't again...?

Wages, for one.

Why have your CKD kit assembled by Australians when a SE Asian country can do it for far less?

[Mighty Reds]

Originally Posted by DanielXR8

Holden is hanging in there for a few years at least. Toyota have also announced they have no plans to stop local production:

http://www.caradvice.com.au/232498/h...-announcement/

For the manufacturing industries sake lets hope that's true.

[mik]

Originally Posted by DanielXR8

Holden is hanging in there for a few years at least. Toyota have also announced they have no plans to stop local production:

http://www.caradvice.com.au/232498/h...-announcement/

perhaps, but i`m told there is a very uneasy feeling at the holden plant at this time and who could blame them, as for toyota, having carted parts for the big 3 over the years and my experience with them i don`t think the bean counters at toyota would stay the course for as long as ford have, ie with 600 million loss, they would be packing bags for japan long before that, it will be interesting to see what our pollies do in the next year(if anything).

[block58]

Falcon nameplate finishing in 2016, not being carried over to import model.

[EFFalcon]

aaaaaaaaaand the dollar dips further

[MickyB]

So does 30% more product mean we will definitely get Mustang? And possibly Taurus and F-truck? Mustang on sale for a reasonable price would be a small consolation for losing our beloved Falcon.

[mik]

Not the first company to close down , sadly probably wont be the last, no one will continue banging their head against the wall trying to make a dollar when the they can import cars cheaper, i just heard on the radio over period x ford oz lost 600 million dollars, the next question is will holden or toyota be next?

[Trump]

Originally Posted by mik

Not the first company to close down , sadly probably wont be the last, no one will continue banging their head against the wall trying to make a dollar when the they can import cars cheaper, i just heard on the radio over period x ford oz lost 600 million dollars, the next question is will holden or toyota be next?

You're right, they ain't the first nor will they be the last. The difference here is that it has set the stage for and put in motion, the closure of Holden's manufacturing then Toyota's.

[Kable72]

Originally Posted by mik

Not the first company to close down , sadly probably wont be the last, no one will continue banging their head against the wall trying to make a dollar when the they can import cars cheaper, i just heard on the radio over period x ford oz lost 600 million dollars, the next question is will holden or toyota be next?

Of course they will be next