Posted: 23 May, 2013
A massive blow for thousands of Ford workers
(Photo: Getty Images)
South Australian Premier Jay Weatherill talks to Triple M about Ford's decision to wind down manufacturing in Australia and the impact on Holden's manufacturing operations in Adelaide.
Latest On Triple M
A massive blow for thousands of Ford workers with the announcement its Broadmeadows and Geelong plants will close.
After more than 90 years making cars in Australia, Ford has effectively called it quits.
It's closing up its two Victorian plants in October 2016, which will put 1,200 workers out of a job.
Ford boss Bob Graziano said manufacturing was no longer viable in Australia with the announcement coming off the back of more profit losses.
"This is shown in our financial results for 2012, which we're announcing today is a loss of $141 million dollars after tax," he said.
"This puts our losses over the five years at approximately $600 million dollars."
Ford Official Statement
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 1,200 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."
Earlier On Triple M
The Australian Manufacturing Workers Union (AMWU) has told Triple M that Ford will be closing its Geelong and Broadmeadows operations from 2016.
AMWU confirms job losses with the closing down of production lines for Falcon and Territory with briefings being held at Geelong and Broadmeadows. Triple M has been told the Research and Development plant at Broadmeadow will not close.
Ford will hold a news conference at 10.45am AEST today.
Earlier this morning, Kelly the wife of a Ford worker asked Triple M if we knew what was happening with the emergency meeting her husband was called to at 9am Thursday. Listen below.
Initially On Triple M
Reports are flooding in Ford is about to announce an end to production in Australia from 2016 in a move that would cost thousands of local jobs.
The Ford workers are facing the chop in the Geelong plant with Broadmeadows also rumoured to be shutting down.
"Kelly from Geelong tells us her husband has been called to a meeting at Ford in Geelong this morning...the news is not good," Triple M's Hot Breakfast posted on its Facebook page.
The struggling car-maker has sent out a media alert about an impending announcement at around 10:45am.
Ford maunfacturers in Australia have been doing it tough with declining slaes. In 2002, the Falcon sedan and wagon had 54,629 sales locally, while last year that number had dropped to 14,026.