Ford Phasing Out Australian Production, Will GM Follow?
05-23-2013, 07:57 AM
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Ford Phasing Out Australian Production, Will GM Follow? 1200 jobs to go as Ford pulls out of car-making in Australia
BY:BEN PACKHAM
The Australian
LABOR and the Coalition have vowed to continue to prop up the nation's struggling car industry, amid Ford's decision to abandon local manufacturing with the loss of 1200 jobs.
Ford Australia boss Bob Graziano today announced the closure from October 2016 of the car-maker's two Victorian plants, at Geelong and Broadmeadows, and the junking of the iconic Falcon brand.
Unveiling a $141 million after-tax loss for the 2012-13 year, Mr Graziano said it was no longer viable for the company to make cars in Australia.
Julia Gillard immediately announced $51 million in assistance to affected communities and to local firms in the vehicle manufacturing supply chain.
Ford's decision, after nearly a century in Australia, has sparked a fresh debate over the wisdom of throwing more money at local car makers.
But the Prime Minister said Labor would not abandon the industry, which has received $12 billion in taxpayer-funded assistance over the past 20 years, including a fresh $34 million for Ford last year.
“I don't agree ... that making cars isn't a viable industry for Australia,” she said.
Tony Abbott, who is promising the industry $500 million less than Labor, also vowed to maintain industry assistance should he win the election.
He said the Coalition supported a “a proper car industry plan”, and would ease the pressure on manufacturing by axing the carbon tax and slashing red tape.
“Obviously anything that adds to the cost of manufacturing in Australia is something that we don't need at a time like this and the carbon tax is one of these things,” the Opposition Leader said.
Mr Graziano said Ford Australia had racked up $600 million in losses over the past five years. It had tried everything it could to put the company on a sustainable footing but the scale of its local operation meant it was unable to complete, he said.
“Our costs are double that of Europe and nearly four times Ford in Asia,” he said.
Free market thinktank, the Centre for Independent Studies, said Ford's decision showed government subsidies were a waste of money.
“Governments have been handing out billions of dollars to foreign carmakers to make large cars that Australians aren't buying,” CIS research fellow Simon Cowan said.
“We need to abandon corporate welfare and divert the billions in funding to worthwhile programs like DisabilityCare.”
He said large car sales in Australia had been sliding over recent years, with new Ford Falcon sales down more than 25 per cent in 2012, yet new car sales overall had risen 10 per cent.
“Manufacturers are not keeping up with the demand for smaller, more fuel-efficient cars,” he said.
Ford currently employs 3500 people at Geelong and at Broadmeadows in Melbourne. The two plants manufacture the Falcon and the Territory SUV.
Around 650 jobs will be lost at Broadmeadows, while 510 positions will go at Geelong.
All would receive their full entitlements, Mr Graziano said.
The company will retain 1500 Australian workers in product development roles.
Mr Graziano said the decision to close the operations was the result of market fragmentation, the small scale of the Australian market, and relative production costs.
The taxpayer-subsidised redevelopment of the Falcon and Territory models would go ahead for release in 2014.
Mr Graziano said the Falcon name was inextricably linked to Ford's Australian brand, and would be retired when the vehicle ceased to be produced locally.
Ford workers were informed of the decision this morning.
Australian Manufacturing Workers Union assistant state secretary Leigh Diehm said workers were shocked and devastated by the news.
He said it was too early to assess the impact of the closures on the auto components industry.
“There are hundreds of thousands of Australians employed by these companies. We're really concerned about what the flow-on effects are,” he said.
A $39 million fund, including $30m from the federal government and $9 million from the Victorian government, will be established to improve employment opportunities in the Broadmeadows and Geelong communities.
A separate $12 million fund, comprising $10 million from the federal government and $2 million from Victorian taxpayers, will deliver assistance to car parts manufacturers.
Sales of the Ford Falcon model have fallen to about 20,000, from 80,000 two decades ago.
The federal government gave the carmaker an extra $34 million in January 2012, with a claim from Ms Gillard that the cash would “see the number of jobs grow” at Ford.
“There will be an additional 300 jobs as a result,” the Prime Minister said at the time.
The Coalition has vowed to put more constraints on car industry grants if it wins office, winding back assistance to the levels in place under the Howard government.
Former Ford boss Jac Nasser, who ran the firm's global operations from 1998-2001, warned earlier this year that the end of car manufacturing in Australia seemed inevitable.
The now-BHP Billiton chairman said it was disappointing Australians weren't more patriotic in supporting the local industry.
http://www.theaustralian.com.au/news...-1226648917020
BY:BEN PACKHAM
The Australian
LABOR and the Coalition have vowed to continue to prop up the nation's struggling car industry, amid Ford's decision to abandon local manufacturing with the loss of 1200 jobs.
Ford Australia boss Bob Graziano today announced the closure from October 2016 of the car-maker's two Victorian plants, at Geelong and Broadmeadows, and the junking of the iconic Falcon brand.
Unveiling a $141 million after-tax loss for the 2012-13 year, Mr Graziano said it was no longer viable for the company to make cars in Australia.
Julia Gillard immediately announced $51 million in assistance to affected communities and to local firms in the vehicle manufacturing supply chain.
Ford's decision, after nearly a century in Australia, has sparked a fresh debate over the wisdom of throwing more money at local car makers.
But the Prime Minister said Labor would not abandon the industry, which has received $12 billion in taxpayer-funded assistance over the past 20 years, including a fresh $34 million for Ford last year.
“I don't agree ... that making cars isn't a viable industry for Australia,” she said.
Tony Abbott, who is promising the industry $500 million less than Labor, also vowed to maintain industry assistance should he win the election.
He said the Coalition supported a “a proper car industry plan”, and would ease the pressure on manufacturing by axing the carbon tax and slashing red tape.
“Obviously anything that adds to the cost of manufacturing in Australia is something that we don't need at a time like this and the carbon tax is one of these things,” the Opposition Leader said.
Mr Graziano said Ford Australia had racked up $600 million in losses over the past five years. It had tried everything it could to put the company on a sustainable footing but the scale of its local operation meant it was unable to complete, he said.
“Our costs are double that of Europe and nearly four times Ford in Asia,” he said.
Free market thinktank, the Centre for Independent Studies, said Ford's decision showed government subsidies were a waste of money.
“Governments have been handing out billions of dollars to foreign carmakers to make large cars that Australians aren't buying,” CIS research fellow Simon Cowan said.
“We need to abandon corporate welfare and divert the billions in funding to worthwhile programs like DisabilityCare.”
He said large car sales in Australia had been sliding over recent years, with new Ford Falcon sales down more than 25 per cent in 2012, yet new car sales overall had risen 10 per cent.
“Manufacturers are not keeping up with the demand for smaller, more fuel-efficient cars,” he said.
Ford currently employs 3500 people at Geelong and at Broadmeadows in Melbourne. The two plants manufacture the Falcon and the Territory SUV.
Around 650 jobs will be lost at Broadmeadows, while 510 positions will go at Geelong.
All would receive their full entitlements, Mr Graziano said.
The company will retain 1500 Australian workers in product development roles.
Mr Graziano said the decision to close the operations was the result of market fragmentation, the small scale of the Australian market, and relative production costs.
The taxpayer-subsidised redevelopment of the Falcon and Territory models would go ahead for release in 2014.
Mr Graziano said the Falcon name was inextricably linked to Ford's Australian brand, and would be retired when the vehicle ceased to be produced locally.
Ford workers were informed of the decision this morning.
Australian Manufacturing Workers Union assistant state secretary Leigh Diehm said workers were shocked and devastated by the news.
He said it was too early to assess the impact of the closures on the auto components industry.
“There are hundreds of thousands of Australians employed by these companies. We're really concerned about what the flow-on effects are,” he said.
A $39 million fund, including $30m from the federal government and $9 million from the Victorian government, will be established to improve employment opportunities in the Broadmeadows and Geelong communities.
A separate $12 million fund, comprising $10 million from the federal government and $2 million from Victorian taxpayers, will deliver assistance to car parts manufacturers.
Sales of the Ford Falcon model have fallen to about 20,000, from 80,000 two decades ago.
The federal government gave the carmaker an extra $34 million in January 2012, with a claim from Ms Gillard that the cash would “see the number of jobs grow” at Ford.
“There will be an additional 300 jobs as a result,” the Prime Minister said at the time.
The Coalition has vowed to put more constraints on car industry grants if it wins office, winding back assistance to the levels in place under the Howard government.
Former Ford boss Jac Nasser, who ran the firm's global operations from 1998-2001, warned earlier this year that the end of car manufacturing in Australia seemed inevitable.
The now-BHP Billiton chairman said it was disappointing Australians weren't more patriotic in supporting the local industry.
http://www.theaustralian.com.au/news...-1226648917020
05-23-2013, 08:04 AM
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Ford workers fear for their futures after decision to shut down Geelong and Broadmeadows factories in 2016
by: Joshua Dowling, Stephen Drill
From: News Limited Network May 23, 2013 8:52PM
FORD slammed the door on its Australian manufacturing business - and 1200 jobs - by email, after accepting a total of $1.1 billion in taxpayer cash over the past 12 years.
The final death knell was delivered by the motoring giant's Detroit board to the email inbox of Ford's Asia-Pacific president, Dave Schoch, on Wednesday night.
Workers were in tears when told that the Geelong and Broadmeadows factories would shut down in October 2016.
And there are fears another 2500 jobs will be lost in the car parts supply industry.
Ford announced a $141 million loss yesterday, bringing the total red ink to $600 million over the past five years.
The car giant's Australian president, Bob Graziano, said Ford had crunched the numbers and not even a gold-plated government bailout would have saved the manufacturing jobs this time.
He admitted it was "difficult news" for staff, but added: "They're professionals and I think they were quite appreciative that I lived up to my commitment to tell them before we told anyone else, and as soon as the decision was taken."
Ford has received $1.1 billion in state and federal handouts since 2000 - and the taxpayer cash continued with $51 million pledged to retrain sacked workers and support suppliers.
Prime Minister Julia Gillard said it was a "distressing day" and called on Ford to make a "significant contribution" to a retraining fund.
Opposition Leader Tony Abbott called it a black day for manufacturing, while AMP chief economist Shane Oliver said could well be remembered as the day the car industry began to die in Australia.
Mr Schoch forwarded the email from Detroit bosses advising of the closure of Ford's manufacturing plants to Mr Graziano from the lounge at Melbourne's Tullamarine Airport, while he was waiting for a flight back to Shanghai after meeting with federal Industry Minister Greg Combet.
He had warned Mr Combet that the company and its Broadmeadows and Geelong plants were under pressure, but the bullet was delivered to workers at 9am yesterday in the canteen.
Mr Graziano said making cars here was four times dearer than in Asia and twice as expensive as in Europe.
Last year Australia imported 171,000 vehicles from Thailand, the second-biggest source of new vehicles after Japan.
In return, Ford Australia exported just 100 Territory SUVs. The Australian market has been flooded with cheaper imported cars as the Australian dollar has soared.
The Australian Manufacturing Workers Union warned Ford's cuts could cause another 2500 job losses at suppliers.
Ford's closure will also put pressure on the future of Holden and Toyota's local manufacturing, but both companies said they were committed to their local operations.
There will be 650 jobs lost at Ford in Broadmeadows and 510 lost in Geelong.
Geelong's economy is expected to suffer with the closure of a major employer, which opened there in 1925.
AMWU vehicle division national secretary Dave Smith said he was in shock.
"This is a company that has been here 80-odd years and employed hundreds of thousands of Australians over that time," he said.
The Ford Falcon badge will be retired when the factories close in October 2016.
Legendary Ford V8 racing driver Dick Johnson, linked with the Falcon brand for decades, said he was extremely disappointed.
"It is a sad day - but at the end of the day everyone is in business to make money," he said.
But the company's historic sponsorship of the Geelong Football Club will continue.
Ford will continue to produce 148 cars a day until it closes its doors, unless demand drops further.
Meanwhile, Ford workers fear the skills honed in lifelong service at the Geelong and Broadmeadows plants will not be enough to find them jobs in an uncertain future.
Dozens of staff broke down in tears as Ford's shock decision to stop car production in Australia in 2016 was announced.
"I feel gutted," said Henry Fuller, who has worked at Ford in Geelong for 25 years.
"In 2016, I'll be mid-50s, so for permanent employment it's going to be very hard, not a good outlook.
"I have a mortgage and I have a family, and I've been on the phone for most of the morning to my partner."
Most workers possess skills only for the manufacturing industry and, with many still unemployed from the last year's cutbacks, there are few local jobs.
Australian Manufacturing Workers Union representative Leigh Diehm said many workers faced unemployment or would be forced to move elsewhere for work.
"Unemployment in this state is high and they (the workers) are quite concerned about the future,"' he said.
"This will gut Geelong and gut Broadmeadows. The people living in these communities will be gutted."
Father of five Mick Bee, 48, from Corio, a maintenance fitter at Ford for more than 30 years, will start looking for a job.
But he said the chance of finding work in Victoria was low.
"I will try and find work in Geelong first. I am looking for a job that keeps my kids going to school but I don't know how I will go," he said.
"I don't want to go interstate. It will be hard on the family and not seeing them, but I will still have a mortgage to pay."
A $39 million rescue package has been offered to the Ford workers from the Federal and Victorian governments to help them find a new job, $30 million of that coming from Canberra.
But Premier Denis Napthine warned there could be pain to come for firms that supply Ford.
"Clearly, there will be challenges for the supply chain and we will be immediately talking to key players to see what opportunities there are for them with GM (Holden) and Toyota, and also what opportunities there are for them to diversify their product or even export," he said.
State Opposition Leader Daniel Andrews said Dr Napthine had short-changed workers with Victoria's $9 million contribution to the rescue package for Ford workers.
"At the very least, Denis Napthine should match the federal contribution," he said.
"These workers and their families are worth more than $9 million. One-off rescue packages are not a replacement for a comprehensive jobs plan."
Maintenance fitter Wayne Moore, 54, refused to let his will be broken by the announcement, and said he would continue to work at the plants until the doors closed in October 2016.
"It will sink in, tomorrow there may be anger," he said of his colleagues' reactions.
"We knew it was going to happen but it is a shock, so you sit down and think, 'What are we going to do?'.
"I am going to stay until the end. Someone needs to pull the place apart, and if I get that option I'll do that."
- with Alex White and Cameron Best
http://www.news.com.au/business/ford...#ixzz2U7WLTRZV
by: Joshua Dowling, Stephen Drill
From: News Limited Network May 23, 2013 8:52PM
FORD slammed the door on its Australian manufacturing business - and 1200 jobs - by email, after accepting a total of $1.1 billion in taxpayer cash over the past 12 years.
The final death knell was delivered by the motoring giant's Detroit board to the email inbox of Ford's Asia-Pacific president, Dave Schoch, on Wednesday night.
Workers were in tears when told that the Geelong and Broadmeadows factories would shut down in October 2016.
And there are fears another 2500 jobs will be lost in the car parts supply industry.
Ford announced a $141 million loss yesterday, bringing the total red ink to $600 million over the past five years.
The car giant's Australian president, Bob Graziano, said Ford had crunched the numbers and not even a gold-plated government bailout would have saved the manufacturing jobs this time.
He admitted it was "difficult news" for staff, but added: "They're professionals and I think they were quite appreciative that I lived up to my commitment to tell them before we told anyone else, and as soon as the decision was taken."
Ford has received $1.1 billion in state and federal handouts since 2000 - and the taxpayer cash continued with $51 million pledged to retrain sacked workers and support suppliers.
Prime Minister Julia Gillard said it was a "distressing day" and called on Ford to make a "significant contribution" to a retraining fund.
Opposition Leader Tony Abbott called it a black day for manufacturing, while AMP chief economist Shane Oliver said could well be remembered as the day the car industry began to die in Australia.
Mr Schoch forwarded the email from Detroit bosses advising of the closure of Ford's manufacturing plants to Mr Graziano from the lounge at Melbourne's Tullamarine Airport, while he was waiting for a flight back to Shanghai after meeting with federal Industry Minister Greg Combet.
He had warned Mr Combet that the company and its Broadmeadows and Geelong plants were under pressure, but the bullet was delivered to workers at 9am yesterday in the canteen.
Mr Graziano said making cars here was four times dearer than in Asia and twice as expensive as in Europe.
Last year Australia imported 171,000 vehicles from Thailand, the second-biggest source of new vehicles after Japan.
In return, Ford Australia exported just 100 Territory SUVs. The Australian market has been flooded with cheaper imported cars as the Australian dollar has soared.
The Australian Manufacturing Workers Union warned Ford's cuts could cause another 2500 job losses at suppliers.
Ford's closure will also put pressure on the future of Holden and Toyota's local manufacturing, but both companies said they were committed to their local operations.
There will be 650 jobs lost at Ford in Broadmeadows and 510 lost in Geelong.
Geelong's economy is expected to suffer with the closure of a major employer, which opened there in 1925.
AMWU vehicle division national secretary Dave Smith said he was in shock.
"This is a company that has been here 80-odd years and employed hundreds of thousands of Australians over that time," he said.
The Ford Falcon badge will be retired when the factories close in October 2016.
Legendary Ford V8 racing driver Dick Johnson, linked with the Falcon brand for decades, said he was extremely disappointed.
"It is a sad day - but at the end of the day everyone is in business to make money," he said.
But the company's historic sponsorship of the Geelong Football Club will continue.
Ford will continue to produce 148 cars a day until it closes its doors, unless demand drops further.
Meanwhile, Ford workers fear the skills honed in lifelong service at the Geelong and Broadmeadows plants will not be enough to find them jobs in an uncertain future.
Dozens of staff broke down in tears as Ford's shock decision to stop car production in Australia in 2016 was announced.
"I feel gutted," said Henry Fuller, who has worked at Ford in Geelong for 25 years.
"In 2016, I'll be mid-50s, so for permanent employment it's going to be very hard, not a good outlook.
"I have a mortgage and I have a family, and I've been on the phone for most of the morning to my partner."
Most workers possess skills only for the manufacturing industry and, with many still unemployed from the last year's cutbacks, there are few local jobs.
Australian Manufacturing Workers Union representative Leigh Diehm said many workers faced unemployment or would be forced to move elsewhere for work.
"Unemployment in this state is high and they (the workers) are quite concerned about the future,"' he said.
"This will gut Geelong and gut Broadmeadows. The people living in these communities will be gutted."
Father of five Mick Bee, 48, from Corio, a maintenance fitter at Ford for more than 30 years, will start looking for a job.
But he said the chance of finding work in Victoria was low.
"I will try and find work in Geelong first. I am looking for a job that keeps my kids going to school but I don't know how I will go," he said.
"I don't want to go interstate. It will be hard on the family and not seeing them, but I will still have a mortgage to pay."
A $39 million rescue package has been offered to the Ford workers from the Federal and Victorian governments to help them find a new job, $30 million of that coming from Canberra.
But Premier Denis Napthine warned there could be pain to come for firms that supply Ford.
"Clearly, there will be challenges for the supply chain and we will be immediately talking to key players to see what opportunities there are for them with GM (Holden) and Toyota, and also what opportunities there are for them to diversify their product or even export," he said.
State Opposition Leader Daniel Andrews said Dr Napthine had short-changed workers with Victoria's $9 million contribution to the rescue package for Ford workers.
"At the very least, Denis Napthine should match the federal contribution," he said.
"These workers and their families are worth more than $9 million. One-off rescue packages are not a replacement for a comprehensive jobs plan."
Maintenance fitter Wayne Moore, 54, refused to let his will be broken by the announcement, and said he would continue to work at the plants until the doors closed in October 2016.
"It will sink in, tomorrow there may be anger," he said of his colleagues' reactions.
"We knew it was going to happen but it is a shock, so you sit down and think, 'What are we going to do?'.
"I am going to stay until the end. Someone needs to pull the place apart, and if I get that option I'll do that."
- with Alex White and Cameron Best
http://www.news.com.au/business/ford...#ixzz2U7WLTRZV
05-23-2013, 08:10 AM
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Ford asked to pitch in to ease closure pain
May 23, 2013 - 5:30PM
Judith Ireland, Jonathan Swan
Speaking on Thursday at a media conference, Ms Gillard committed the federal government to $30 million to help communities hit by the closures of plants in Geelong and Broadmeadows. The Victorian government will contribute $9 million.
Another $10 million will be provided to help car-part suppliers to diversify and win business opportunities in new markets. The state government will provide $2 million.
Ms Gillard said that ''today is a very sad day'' for Ford workers and their families.
''For those working people as they absorb this news, I want to say to them we will make sure that you are not left behind,'' she said.
Ms Gillard also acknowledged there would also be ''anxiety and sadness'' in the Geelong and Broadmeadows communities and along the car manufacturing supply chain.
She said the government wanted to source new opportunities for those communities.
''For Australians generally, I understand many people will hear today's news and it will worry them,'' she said.
Ms Gillard said she wanted to tell Australians that ''here in our nation we show time after time how good we are when we work together''.
Ms Gillard said that Industry Minister Greg Combet was briefed by Ford on Sunday but was unable to attend Thursday's press conference due to illness.
The Prime Minister explained that the high Australian dollar was putting a lot of pressure on industries such as manufacturing.
The two plants manufacture the Falcon and the Territory SUV.
In January 2012, the Gillard government announced a $34 million grant to Ford. In return Ford publicly indicated that it would continue making cars in Australia on the Falcon platform, at least until late 2016.
The company at the time said a $103 million production upgrade had secured its immediate future. The Victorian government contributed an unspecified amount to the company.
Ms Gillard on Thursday justified the government's $34 million grant to Ford, saying it was about the models that were going to be produced until 2016.
''That money was pledged for a purpose and it will still be used for that same purpose. That is, enabling jobs to continue to October 2016,'' she said.
Time for 'urgent' talks: ACTU
In the wake of the Ford announcement, the Australian Council of Trade Unions has called for ''urgent'' talks between the federal and Victorian governments, car manufacturers, car component representatives and unions.
ACTU secretary Dave Oliver has written to to Ms Gillard and Victorian Premier Denis Napthine, as well as the heads of Ford, Holden and Toyota to request an urgent meeting.
''These discussions need to address what the knock-on effects of Ford's announcement are,'' Mr Oliver said in a statement.
''This includes the impact on jobs throughout the supply chain and what can be done to consolidate, diversify and improve access to global markets for Australian car manufacturers.''Mr Oliver also condemned Ford's decision on Thursday.
"Governments and unions have been working hard to sustain manufacturing in Australia and Ford has walked away from this. They have devastated thousands of families, and the Geelong community," he said.
Opposition Leader Tony Abbott says Ford's decision to stop making cars in Australia is a black day for Australian manufacturing and everyone associated with government must help the sector.
Mr Abbott, speaking to reporters in Hobart, said the Coalition was dedicated to making it easier for manufacturing to survive in Australia.
He said this meant lowering tax, reducing regulation, increasing productivity and ensuring there were no sovereign risk issues.
Coalition industry spokeswoman Sophie Mirabella said the Ford announcement was a ''grave development'' for manufacturing in Australia.
"Today's announcement will send a shock wave through the manufacturing sector," Ms Mirabella said in a statement.
Ms Mirabella said the Coalition gave its in-principle support to the fund that was announced on Thursday by the federal and Victorian governments.
But she said Labor had made a ''challenging situation more difficult'' by adding to manufacturing costs in Australia by introducing the carbon tax and ''chopping and changing policy''.
Earlier, Treasurer Wayne Swan said the government would do everything it can to look after Ford workers and communities as the company announces that it will cease its manufacturing operations in Australia by October 2016, putting 1200 people out of work.
Ford Australia president and chief executive Bob Graziano said the company made a loss of $141 million after tax in the last financial year, with a loss of $600 million over the past five years.
Mr Graziano said the costs of manufacturing cars in Australia was uncompetitive.
''Manufacturing is not viable for Ford in the long term,'' he told reporters at Broadmeadows on Thursday.
'Sad day' for local communities
Labor MP for Corio, Richard Marles, said it was a ‘‘very dark day’’ for Geelong. He said he had spoken with the Prime Minister on Thursday to explore what other assistance Labor could give the retrenched workers.
It was ‘‘incumbent upon Ford to make significant contributions’’, Mr Marles said.
‘‘Geelong has been very good to Ford since the 1920s. Ford owes it to these workers and to Geelong to make sure they do everything in their power to help them.’’
Mr Marles was encouraged that Ford would continue sponsoring the Geelong Football Club and keep about 400 high-tech jobs in the city.
Labor MP for Corangamite, Darren Cheeseman, said he received a phone call from Ford management this morning informing him of their decision to close Australian manufacturing from October 2016.
Mr Cheeseman was told that in his area, which includes parts of Greater Geelong, about 400 to 500 jobs would be lost in manufacturing but about 400 jobs in product development would remain.
Shortly after, a Ford employee he had known for about 25 years called Mr Cheeseman to tell him about the announcement.
''He was obviously devastated,'' Mr Cheeseman said. ''He's very passionate about cars and very passionate about Ford. Him and his family only buy Ford.''
The employee wanted to know what help Ford had sought from the federal government, Mr Cheeseman said.
Mr Cheeseman said he would talk to the Prime Minister later on Thursday. He will be seeking money for training retrenched workers and for broader financial assistance for Geelong.
Labor MP for Calwell, Maria Vamvakinou, said she worried about the ''wide ranging'' effects the Ford closure would have on the suburb in her electorate, Broadmeadows.
While Ford would keep high-skilled jobs in design and engineering, Ms Vamvakinou said she was concerned about the loss of low skilled manufacturing jobs, which had been so important to Broadmeadows' large population of new migrants.
''It's a sad day for my constituents,'' Ms Vamvakinou said. ''My thoughts are particularly with those workers in the mature age category who might find it more difficult than the younger ones to re-skill.''
http://www.smh.com.au/opinion/politi...#ixzz2U7YBF4ZM
May 23, 2013 - 5:30PM
Judith Ireland, Jonathan Swan
Speaking on Thursday at a media conference, Ms Gillard committed the federal government to $30 million to help communities hit by the closures of plants in Geelong and Broadmeadows. The Victorian government will contribute $9 million.
Another $10 million will be provided to help car-part suppliers to diversify and win business opportunities in new markets. The state government will provide $2 million.
Ms Gillard said that ''today is a very sad day'' for Ford workers and their families.
''For those working people as they absorb this news, I want to say to them we will make sure that you are not left behind,'' she said.
Ms Gillard also acknowledged there would also be ''anxiety and sadness'' in the Geelong and Broadmeadows communities and along the car manufacturing supply chain.
She said the government wanted to source new opportunities for those communities.
''For Australians generally, I understand many people will hear today's news and it will worry them,'' she said.
Ms Gillard said she wanted to tell Australians that ''here in our nation we show time after time how good we are when we work together''.
Ms Gillard said that Industry Minister Greg Combet was briefed by Ford on Sunday but was unable to attend Thursday's press conference due to illness.
The Prime Minister explained that the high Australian dollar was putting a lot of pressure on industries such as manufacturing.
The two plants manufacture the Falcon and the Territory SUV.
In January 2012, the Gillard government announced a $34 million grant to Ford. In return Ford publicly indicated that it would continue making cars in Australia on the Falcon platform, at least until late 2016.
The company at the time said a $103 million production upgrade had secured its immediate future. The Victorian government contributed an unspecified amount to the company.
Ms Gillard on Thursday justified the government's $34 million grant to Ford, saying it was about the models that were going to be produced until 2016.
''That money was pledged for a purpose and it will still be used for that same purpose. That is, enabling jobs to continue to October 2016,'' she said.
Time for 'urgent' talks: ACTU
In the wake of the Ford announcement, the Australian Council of Trade Unions has called for ''urgent'' talks between the federal and Victorian governments, car manufacturers, car component representatives and unions.
ACTU secretary Dave Oliver has written to to Ms Gillard and Victorian Premier Denis Napthine, as well as the heads of Ford, Holden and Toyota to request an urgent meeting.
''These discussions need to address what the knock-on effects of Ford's announcement are,'' Mr Oliver said in a statement.
''This includes the impact on jobs throughout the supply chain and what can be done to consolidate, diversify and improve access to global markets for Australian car manufacturers.''Mr Oliver also condemned Ford's decision on Thursday.
"Governments and unions have been working hard to sustain manufacturing in Australia and Ford has walked away from this. They have devastated thousands of families, and the Geelong community," he said.
Opposition Leader Tony Abbott says Ford's decision to stop making cars in Australia is a black day for Australian manufacturing and everyone associated with government must help the sector.
Mr Abbott, speaking to reporters in Hobart, said the Coalition was dedicated to making it easier for manufacturing to survive in Australia.
He said this meant lowering tax, reducing regulation, increasing productivity and ensuring there were no sovereign risk issues.
Coalition industry spokeswoman Sophie Mirabella said the Ford announcement was a ''grave development'' for manufacturing in Australia.
"Today's announcement will send a shock wave through the manufacturing sector," Ms Mirabella said in a statement.
Ms Mirabella said the Coalition gave its in-principle support to the fund that was announced on Thursday by the federal and Victorian governments.
But she said Labor had made a ''challenging situation more difficult'' by adding to manufacturing costs in Australia by introducing the carbon tax and ''chopping and changing policy''.
Earlier, Treasurer Wayne Swan said the government would do everything it can to look after Ford workers and communities as the company announces that it will cease its manufacturing operations in Australia by October 2016, putting 1200 people out of work.
Ford Australia president and chief executive Bob Graziano said the company made a loss of $141 million after tax in the last financial year, with a loss of $600 million over the past five years.
Mr Graziano said the costs of manufacturing cars in Australia was uncompetitive.
''Manufacturing is not viable for Ford in the long term,'' he told reporters at Broadmeadows on Thursday.
'Sad day' for local communities
Labor MP for Corio, Richard Marles, said it was a ‘‘very dark day’’ for Geelong. He said he had spoken with the Prime Minister on Thursday to explore what other assistance Labor could give the retrenched workers.
It was ‘‘incumbent upon Ford to make significant contributions’’, Mr Marles said.
‘‘Geelong has been very good to Ford since the 1920s. Ford owes it to these workers and to Geelong to make sure they do everything in their power to help them.’’
Mr Marles was encouraged that Ford would continue sponsoring the Geelong Football Club and keep about 400 high-tech jobs in the city.
Labor MP for Corangamite, Darren Cheeseman, said he received a phone call from Ford management this morning informing him of their decision to close Australian manufacturing from October 2016.
Mr Cheeseman was told that in his area, which includes parts of Greater Geelong, about 400 to 500 jobs would be lost in manufacturing but about 400 jobs in product development would remain.
Shortly after, a Ford employee he had known for about 25 years called Mr Cheeseman to tell him about the announcement.
''He was obviously devastated,'' Mr Cheeseman said. ''He's very passionate about cars and very passionate about Ford. Him and his family only buy Ford.''
The employee wanted to know what help Ford had sought from the federal government, Mr Cheeseman said.
Mr Cheeseman said he would talk to the Prime Minister later on Thursday. He will be seeking money for training retrenched workers and for broader financial assistance for Geelong.
Labor MP for Calwell, Maria Vamvakinou, said she worried about the ''wide ranging'' effects the Ford closure would have on the suburb in her electorate, Broadmeadows.
While Ford would keep high-skilled jobs in design and engineering, Ms Vamvakinou said she was concerned about the loss of low skilled manufacturing jobs, which had been so important to Broadmeadows' large population of new migrants.
''It's a sad day for my constituents,'' Ms Vamvakinou said. ''My thoughts are particularly with those workers in the mature age category who might find it more difficult than the younger ones to re-skill.''
http://www.smh.com.au/opinion/politi...#ixzz2U7YBF4ZM
05-23-2013, 08:15 AM
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Ford shutting down Australian plants
Ford Australia President and CEO Bob Graziano said the company made a loss of $141 million after tax in the last financial year, with a loss of $600 million over the last five years.
Ford Australia employs more than 3500 people at its manufacturing plants at Broadmeadows, in Melbourne's north, and Geelong.
In January last year, the federal government contributed $34 million to Ford's $103 million production upgrade, and the Victorian government an unspecified amount.
At the time the company said the upgrade would mean the Territory and Falcon models would continue to be made in Victoria until 2016.
Ford New Zealand spokesman Tom Clancy said that while the news would "have a major impact on our co-workers across the Tasman, the restructure does not extend to Ford New Zealand."
"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. And Ford Australia and Ford New Zealand 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."
Clancy said the company would also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian & New Zealand customers by 2016.
Driven editor Matt Greenop said Ford Australia had struggled in recent years - as had all manufacturers of large cars.
"The writing has been on the wall for a while. Holden developed the upcoming VF Commodore as a joint venture with the US, and already sell a left-hand drive version of the car as Chevy SS. That was a clever move to keep development costs down, as the markets change their focus to smaller cars and crossover SUVs. Ford didn't really have that option with the Falcon, in fact there have been rumours that it would be replaced with the global platform Taurus in the near future. Obviously the future is nearly here."
Greenop said Ford New Zealand will continue to source vehicles from Australia until the plants close, but even now brings in products from Europe and Asia.
"The company had hoped to stem the flow of customers out of Falcon with an EcoBoost engine, which was a highly advanced two-litre turbo four-cylinder as opposed to the traditional six-cylinder. Unfortunately, even though the EcoBoost Falcon is a fantastic vehicle out of Australia, the reality was that Falcon buyers don't want a little four-pot, and buyers stayed away."
"Ford's managing director told me that there will be no significant impact on New Zealand operations, and that support for the Falcon and Territory will continue until 2026 and beyond.
"Ford is a global company with a strong presence in Europe, so is taking some big financial hits at the moment, and with petrol prices as high as they are in Australia and here, people just aren't buying big cars. Unfortunately for Ford Australia, their locally-built Falcon and Territory are both sizable machines."
Ford Australia's Bob Graziano said the costs of manufacturing cars in Australia was uncompetitive.
"Manufacturing is not viable for Ford in the long term," he told reporters today.
Graziano said all entitlements would be protected for the 1200 employees whose jobs are affected, and the company will work through the next three years to provide support.
The reduced demand for large cars was a factor in the company's decision, Graziano said.
"There's been a significant change in terms of the total number of vehicles sold in the large car segment," he said.
The company would still roll out the new models of the Falcon and Territory next year but production would cease in October 2016, Graziano said.
Ford would maintain a presence in Australia beyond that date.
"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," he said.
Graziano said despite efforts to restructure the business, locally made products continued to be unprofitable while imported products were profitable.
"Our cost structure remained uncompetitive ... it is double that of Europe and four times that of Ford in Asia," he said.
Graziano said the company had made aggressive assumptions about possible future government car industry support and lower labour costs, which he did not think would be acceptable by Australians and would not have made the business profitable.
"We did not leave any stone unturned but even with these assumptions the business case did not stack up," he said.
Graziano said around 650 jobs would be lost in Broadmeadows, while 510 positions would go at Geelong.
He said no decisions had been taken on the company's motorsport teams or about its premium car brand Ford Performance Vehicles.
Australian Manufacturing Workers Union assistant state secretary Leigh Diehm said workers were shocked and devastated by the news.
Diehm said the union would meet with Ford bosses this afternoon to discuss the implications of the decision.
He said it was too early to know what impact the closures would have on the auto components industry, which employs hundreds of thousands of people.
"We're really concerned about it .. the auto components industry not only supplies Ford, (it) also supplies Holden and Toyota. There are hundreds of thousands of Australians employed by these companies. We're really concerned about what the flow-on effects are."
Diehm said car manufacturing was a vital industry for the country and it needed to survive.
http://www.nzherald.co.nz/business/n...ectid=10885647
Ford Australia President and CEO Bob Graziano said the company made a loss of $141 million after tax in the last financial year, with a loss of $600 million over the last five years.
Ford Australia employs more than 3500 people at its manufacturing plants at Broadmeadows, in Melbourne's north, and Geelong.
In January last year, the federal government contributed $34 million to Ford's $103 million production upgrade, and the Victorian government an unspecified amount.
At the time the company said the upgrade would mean the Territory and Falcon models would continue to be made in Victoria until 2016.
Ford New Zealand spokesman Tom Clancy said that while the news would "have a major impact on our co-workers across the Tasman, the restructure does not extend to Ford New Zealand."
"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. And Ford Australia and Ford New Zealand 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."
Clancy said the company would also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian & New Zealand customers by 2016.
Driven editor Matt Greenop said Ford Australia had struggled in recent years - as had all manufacturers of large cars.
"The writing has been on the wall for a while. Holden developed the upcoming VF Commodore as a joint venture with the US, and already sell a left-hand drive version of the car as Chevy SS. That was a clever move to keep development costs down, as the markets change their focus to smaller cars and crossover SUVs. Ford didn't really have that option with the Falcon, in fact there have been rumours that it would be replaced with the global platform Taurus in the near future. Obviously the future is nearly here."
Greenop said Ford New Zealand will continue to source vehicles from Australia until the plants close, but even now brings in products from Europe and Asia.
"The company had hoped to stem the flow of customers out of Falcon with an EcoBoost engine, which was a highly advanced two-litre turbo four-cylinder as opposed to the traditional six-cylinder. Unfortunately, even though the EcoBoost Falcon is a fantastic vehicle out of Australia, the reality was that Falcon buyers don't want a little four-pot, and buyers stayed away."
"Ford's managing director told me that there will be no significant impact on New Zealand operations, and that support for the Falcon and Territory will continue until 2026 and beyond.
"Ford is a global company with a strong presence in Europe, so is taking some big financial hits at the moment, and with petrol prices as high as they are in Australia and here, people just aren't buying big cars. Unfortunately for Ford Australia, their locally-built Falcon and Territory are both sizable machines."
Ford Australia's Bob Graziano said the costs of manufacturing cars in Australia was uncompetitive.
"Manufacturing is not viable for Ford in the long term," he told reporters today.
Graziano said all entitlements would be protected for the 1200 employees whose jobs are affected, and the company will work through the next three years to provide support.
The reduced demand for large cars was a factor in the company's decision, Graziano said.
"There's been a significant change in terms of the total number of vehicles sold in the large car segment," he said.
The company would still roll out the new models of the Falcon and Territory next year but production would cease in October 2016, Graziano said.
Ford would maintain a presence in Australia beyond that date.
"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," he said.
Graziano said despite efforts to restructure the business, locally made products continued to be unprofitable while imported products were profitable.
"Our cost structure remained uncompetitive ... it is double that of Europe and four times that of Ford in Asia," he said.
Graziano said the company had made aggressive assumptions about possible future government car industry support and lower labour costs, which he did not think would be acceptable by Australians and would not have made the business profitable.
"We did not leave any stone unturned but even with these assumptions the business case did not stack up," he said.
Graziano said around 650 jobs would be lost in Broadmeadows, while 510 positions would go at Geelong.
He said no decisions had been taken on the company's motorsport teams or about its premium car brand Ford Performance Vehicles.
Australian Manufacturing Workers Union assistant state secretary Leigh Diehm said workers were shocked and devastated by the news.
Diehm said the union would meet with Ford bosses this afternoon to discuss the implications of the decision.
He said it was too early to know what impact the closures would have on the auto components industry, which employs hundreds of thousands of people.
"We're really concerned about it .. the auto components industry not only supplies Ford, (it) also supplies Holden and Toyota. There are hundreds of thousands of Australians employed by these companies. We're really concerned about what the flow-on effects are."
Diehm said car manufacturing was a vital industry for the country and it needed to survive.
http://www.nzherald.co.nz/business/n...ectid=10885647
05-24-2013, 09:51 AM
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05-24-2013, 11:41 AM
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I wonder if they will build them elsewhere and then import them? It seems the coyote motor will probablymeet the emissions rwgs since Iit Iis supposed to go global. Ibwould live the turbo 6 Falcin though 
05-24-2013, 09:12 PM
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