Ford Set To Announce Future Of Geelong Engine Plant

[f-wolf]

Ford Set to Announce Future of Geelong Engine Plant

18 Jul, 2007

Ford Australia will today announce the future of the Geelong engine plant where all of its inline-six cylinder engines are currently produced.

Speculation began last week when GoAuto ran a story that rumored a V6 engine would be used in the local Falcon by 2010 to meet emissions regulations. From there, serious hype was built which sent workers into frenzy.

Despite an appropriation of over $52-million from the Howard Government last year to further develop Territory and Falcon, along with $28-million to improve fuel efficiency in 2005, Ford still insists that a V6 engine is the only way for the local manufacturer to meet impending Euro IV emissions regulations.

Ford spokeswoman - Sinead McAlary - hasn?t confirmed the fate of the workers, but confirmed to News.com.au that a decision with regards to the fate of workers is imminent and after employees were informed, the announcement would be made to the market.

With that, the closure of Ford Australia?s 82-year old engine plant is likely, from there the fate of 600 workers jobs remains uncertain.

Victorian Premier, Steve Bracks today said:

?We have invested in Ford and invested in new production, we?ve invested in making sure they can produce long term in this state and we?d be very disturbed to see any job loss,?

Mr Bracks also said that the Victorian Government would stand by Ford employees and make sure assistance and support is provided in the event of change.

Mr Bracks then went on to say:

?We haven?t had the details yet because, I understand, the workforce is being briefed by Ford today and the company will make an announcement,?

From the ABC News

18 July 2007

Macfarlane flags Ford plant closure

The Federal Government has beaten car manufacturer Ford to the punch by announcing the company will confirm this afternoon its plan to close its engine-making plant in Geelong.

It is expected that 600 people will lose their jobs at the plant and that some workers at the company's Broadmeadows plant will also be made redundant.

But even before the company has announced the details, federal Industry Minister Ian Macfarlane has said the federal and Victorian governments are already working on a $15 million assistance package for workers.

Staff have been nervous about their future since Ford revealed it was considering alternatives to its locally produced six-cylinder engine.

Mr Macfarlane confirmed what would happen late this morning.

"Ford will be announcing this afternoon the closure of their engine plant and that is probably one of the worst -kept secrets in the automotive area at the moment," he said.

Australian Manufacturing Workers Union (AMWU) national secretary Dave Oliver says the impact will be immense.

"We're devastated. It's going to have a significant impact, not only on the workers at the Geelong plant but right throughout the community," he said.

Geelong Chamber of Commerce and Industry executive director Laurie Miller says the job cuts will lead to more job losses across the city.

"There will be a multiplying affect - three jobs will be affected totally so we are looking at 2,000 jobs in the region will be impacted on by the closure," he said.

The 600 jobs at Ford are expected to be phased out between now and 2010.

ABC News just in

Ford's Geelong plant to close, 600 jobs lost

Posted 13 minutes ago

The Ford Motor Company has confirmed it plans to close its engine assembly plant at Geelong in Victoria, costing 600 jobs.

The factory will close in 2010, with the company to import a new V6 engine for the locally produced Falcon, Falcon ute and Territory models.

The federal and Victorian governments have responded to the closure by announcing a $24 million assistance package.

Victorian Premier Steve Bracks says the Geelong area is experiencing jobs growth and he hopes those affected will be able to find work elsewhere.

"We will have a combined fund, which will be contributed to by the Federal, the State Government and by Ford Australia, into investment and innovation in Geelong, to seek to have further investment and further opportunities for job growth in the future," he said.

The Federal Government is fending off claims it failed to do enough to prevent the closure of the plant.

Australian Manufacturing Workers Union (AMWU) national secretary Dave Oliver says the Government should have done more to make the industry competitive.

"Instead of palliative care we would have liked to have seen the Government intervene to save the jobs in the first place," he said.

Federal Industry Minister Ian Macfarlane says that is not the case.

"We have made a significant contribution to the car industry in Australia," he said.

"As a Government we've allocated some $7.3 billion."

Federal Opposition Leader Kevin Rudd says he will support any assistance package for the Geelong community.

"Anything which assists the Geelong community of course we would support on a bipartisan basis, but my concern is not just a package for measures for the Geelong community after the closure of this plant," he said.

"My concern is for the long-term viability of the Australian automobile industry.

"That's why we have a half-billion-dollar fund proposal on the table."

Ford workers 'shattered'

Leo Shanahan, The Age, 18/07/07

Ford Australia has this afternoon confirmed they will bring to an end 81 years of engine manufacturing at Geelong at the cost of 600 jobs in a move that will devastate the local economy.

As predicted, Ford said it a statement today that they would stop production of their in-line six cylinder engine and replace it with an imported V6.

"From 2010 Ford Australia will import a global new Duratec V6 engine, including high performance derivatives, for use in the company's locally made Falcon, Falcon Ute and Territory model lines," the statement said.

"As a result, the company will discontinue its Australian I6 engine operations in Geelong in 2010. Redeployment opportunities will be maximised wherever possible and the company will work closely with its employees and unions to minimise the impact on the 600 people affected by the decision across engine operations."

Earlier, "shattered" Ford workers learnt their fate as the federal government the job losses.

Victorian premier Steve Bracks and Prime Minister John Howard vowed to help affected workers find new jobs shortly after the announcement.

Australian Manufacturing Workers' Union (AMWU) vehicle division federal secretary Ian Jones said the workers felt cheated as moves were underway to cater for Ford employees put out of work.

Mr Jones said the state and federal governments would fund a $24 million regional development package, aimed to help the 600 workers secure suitable employment.

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Governments pledge funding

The Federal and State Governments, along with Ford, have pledged to establish a $24 million fund to aid the Geelong economy after the cuts.

The move is a result of tough new Euro IV emissions standards that all new cars must comply with under federal law by 2010.

The company said the move is also a result of an increasingly dire large vehicle market in Australia.

"The decision to introduce the new engine and discontinue engine operations at Geelong follows industry-wide changes in consumer behaviour, including lower demand for large cars and the corresponding increase in popularity of smaller, imported vehicles.

"These changes have seen sales of locally produced vehicles as a percentage of the total industry in Australia fall from 36.1 per cent in 1998 to 19.4 per cent year-to-date in 2007."

A 'disaster' for Geelong

"It's a disaster (on) a huge scale for families in Geelong,'' Mr Jones said.

"They feel abandoned and they feel angry.''

Ford is yet to make an official announcement, but Indusrtry Minister Ian Macfarlane today said he had known for about a month and a half that the move was likely.

He received official confirmation a few days ago, he said. Ford has yet to officially announce the closure.

"In response to that, the Commonwealth and Victorian governments are today announcing an innovation and investment fund to cover the Geelong area,'' Mr Macfarlane told reporters.

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Bracks pledges new jobs

Mr Bracks today has promised to help provide more jobs in Geelong.

And he is urging the federal government to reconsider its planned five per cent tariff reduction on imported cars, due in 2010, in an effort to help the domestic market.

Ahead of a Ford announcement this afternoon, both Mr Bracks and federal Industry Minister Ian Macfarlane have confirmed Ford's engine plant in Geelong will close in 2010, shedding 600 jobs.

Victoria will contribute $6 million to a fund to offer grants for projects in Geelong to create new jobs in the region.

The federal government will put in $15 million and Ford will contribute $3 million.

"Whilst of course we regret the decision that the Ford engine plant will be discontinuing in 2010, we will stand by Geelong, we'll stand by the workforce, we'll assist and support the workforce,'' Mr Bracks told reporters.

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Ford's future 'solid'

Mr Bracks said despite today's announcement, Ford's future in Victoria was solid.

"The Ford operations in this state, in Victoria, are secure and safe for the future,'' he said.

"Already they're investing some $1.8 billion into the long-term production capacity of Ford, including a new research and development centre, including a next-generation Falcon, including commitments ongoing.''

The federal government will contribute $15 million to the fund, and the Victorian government $6 million, he said.

"As well as that Ford have agreed with the commonwealth to establish a $3 million community fund and that is to assist those people that will now face a very difficult situation as the plant is wound down in 2010 and Ford moves its next model Falcon to a V6 engine.''

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Howard offers help

The federal government will help Ford's Geelong engine plant workers find new employment, Mr Howard has said.

But, he said, Ford's problems were not the result of government policies or the state of the economy.

"It's a consequence of marketing reality and these decisions are made by companies from time to time,'' Mr Howard told reporters in Adelaide.

"The good thing is the economy is strong and employment conditions are very good.

"Therefore, the prospects of people finding alternative jobs, if they need to, are much brighter now than they were say 10 or 15 years ago.''

Mr Howard said the government would follow the Ford situation closely and provide transitional help and some financial assistance where necessary.

But he rejected any suggestions the government had not adequately supported Australia's automotive manufacturing industry.

Ford Kills the I6 Engine -

Official Details

18 Jul, 2007

Ford Australia have just confirmed the company will import a global new Duratec V6 engine from 201. The move will see a range of basic and high performance engines as the powerplant of Australia?s iconic Falcon, Falcon Ute and Territory model lines.

?The Australian car market has fundamentally and permanently changed,? said Ford Australia President Mr Tom Gorman.

Ford says the move is primarily an attempt to not only meet emissions ratings but also give the company the flexibility to potentially incorporate future alternative fuel strategies, such as diesel technology.

Ford also blames the diminishing demand for large cars and the corresponding increase in popularity of smaller, imported vehicles (VFACTS figures show a drop in market share of 16.7 per cent in the lat 9 years.

?Although we remain committed to our current local vehicle lines ? Falcon, Falcon Ute and Territory, it is imperative that we improve our ability to respond to the increasing consumer desire for alternative fuels, improved performance, and better fuel economy while spreading the investment required across a broader base of vehicles. Importing the new engine from 2010 will allow us to achieve these goals.? Mr Gorman added.

The decision to ditch the I6 engine will mean Ford will discontinue its Australian I6 engine operations in Geelong come 2010. Ford says redeployment opportunities will be maximised wherever possible and the company will work closely with its employees and unions to minimise the impact on the 600 people affected by the decision.

Despite the news, construction continues at the company?s new Research & Development Centre, ($1.8 billion investment program), and is due for completion later this year. Everything will also remain unchanged at the Ford?s test facilities at Lara along with usual operations at the company?s stamping plant and Ford Discovery Centre.

Ford has announced the company?s remaining 1400 employees in Geelong and 3000 in Campbellfield will not be directly impacted by the decision.

?We look forward to working with our employees to ensure we can deliver on the next step in our process to continue building our business here in Australia.? Mr Gorman said.

The new engine will come from high volume US engine facilities that are expecting engine production to hit nearly one million per year by 2011. Ford Australia currently only produces 70,000 engines each year.

Ford have also confirmed a slight change of plans for its Campbellfield manufacturing plant with moves to help increase productivity and capacity utilisation.

?We are currently investigating a number of alternatives that will allow us to return our Campbellfield manufacturing facility to 100 per cent capacity,? said Mr Gorman.

2010 will see the end of one of Australia?s most loved engines, the inline six engine will undoubtedly receive a worthy farewell in due time.

After all the rumour, speculation, federal government announcements and union pronouncements, Ford has now come clean

There's bad news and good news in Ford's announcement concerning the Geelong plant.

The company's Public Affairs department issued a statement at 1.30 pm, putting the best possible complexion on the news that up to 600 staff would be laid off in 2010.

With the Project Orion Falcon due early next year (more here ), the in-line six-cylinder engine (pictured) currently in production at Ford's Geelong plant will continue until the company can bring in a new V6 (also pictured), which is built at Ford's Lima, Ohio plant in the USA.

The new engine will be a DOHC V6 of all-alloy construction. In 3.5-litre form, the engine is an oversquare design (wider bore, shorter stroke), but does offer variable valve timing to overcome some of the inherent 'peakiness' of that engine characteristic. Rumour suggests the Falcon will get a 3.7-litre version.

Torque for the 3.5 V6 is 325Nm at a high engine speed of 4500rpm. The V6 can be built in capacities up to 4.0-litre and it may be possible to tune the engine for the sort of heavy duty torque applications for which the Falcon's in-line six is renowned.

In fact, the 3.5-litre engine is the base powerplant for the F150 commercial vehicle, so torque probably won't be an issue for a sedan.

This new engine will be 'E85-compliant', meaning it could conceivably run on fuel containing 85 per cent ethanol, by volume. The engine may also spawn diesel variants which could be offered in future Falcon and Territory models.

A 'Twin Force' version of the V6 with twin turbochargers may replace the XR6T Barra engine.

The engine was designed to be coupled to a modern six-speed automatic for applications in the US, but it's by no means assured that this transmission will be coming to Australia when Ford has such a long and mutually beneficial relationship with BTR and -- more recently -- ZF.

Ford Australia President Tom Gorman said "Our new engine strategy is a direct response to the lower manufacturing levels of locally produced large vehicles."

"Although we remain committed to our current local vehicle lines ? Falcon, Falcon Ute and Territory, it is imperative that we improve our ability to respond to the increasing consumer desire for alternative fuels, improved performance, and better fuel economy while spreading the investment required across a broader base of vehicles. Importing the new engine from 2010 will allow us to achieve these goals."

The Ford statement also touched on the subject of returning the Campbellfield car-building plant to 100 per cent capacity.

Unfortunately, Mr Gorman was not forthcoming on what the strategy for that endeavour might be, saying merely "We are currently investigating a number of alternatives that will allow us to return our Campbellfield manufacturing facility to 100 per cent capacity."

Among all the doom, the good news is 1400 staff will remain employed by Ford at Geelong and the company's R&D centre will be completed later this year.

Ford would not confirm or deny it, but the word on the R&D centre leads us to surmise that Ford Australia is now committed to providing the research and development effort for the platform of the Falcon to come after the Project Orion model -- said to be codenamed Project Huntsman -- and that car may share its undercarriage with the American market Mustang.

Industry minister Ian Macfarlane told Melbourne paper 'The Age' that he had received official confirmation a few days ago.

Both the federal and Victorian state governments will stump up a total of $21 million to promote innovation and investment for the Geelong area. Ford will also contribute $3 million towards the Geelong community.

End of the line: Falcon and Territory will both be powered by a more efficient US-built V6 within three years.

Jobs lost as Ford drops local engine in favour of imported V6 from 2010

By JAMES STANFORD 18 July 2007

FORD Australia has announced it will close its Geelong engine plant in 2010.

Around 600 workers at the facility will be left without jobs.

GoAuto was first to report the decision to end the production of the 4.0-litre six-cylinder engine and replace it with an imported V6 last week.

Affected workers at the Geelong factory were informed of the decision at lunchtime today.

Ford Australia president Tom Gorman said the move was partly in reaction to falling sales of the Falcon range.

?Our new engine strategy is a direct response to the lower manufacturing levels of locally produced large vehicles,? Mr Gorman said.

?Although we remain committed to our current local vehicle lines ? Falcon, Falcon Ute and Territory - it is imperative that we improve our ability to respond to the increasing consumer desire for alternative fuels, improved performance and better fuel economy while spreading the investment required across a broader base of vehicles. Importing the new engine from 2010 will allow us to achieve these goals.?

Ford Australia has confirmed the new engine will be a Duratec V6, produced at one of several facilities in the US, which are expected to build a combined volume of more than one million engines a year by 2011.

Ford Australia?s Geelong plant currently produces around 70,000 engines a year.

The company has hinted that high-performance versions of the V6 engine, which are believed to include a twin-turbocharged unit, will be fitted to the Falcon, while a diesel engine will also be considered.

The closure of the six-cylinder engine plant, which has operated since 1926, will be a massive blow to the city of Geelong as Ford is one of the city?s biggest employers along with Shell and Alcoa.

The steel stamping plant at the Geelong Ford facility will continue to make body parts for Falcon and Territory models and it is understood that the product development centre will also continue to be located on the same site.

Ford Australia said it will try to redeploy as many affected staff as possible and said it will work closely with its employees and unions to minimise the impact on the engine plant workers.

Today?s announcement marks the demise of the only existing engine that has been both developed and produced in Australia.

While Expensive Daewoo builds the Alloytec V6 at its new Port Melbourne facility, that engine was designed and developed in Detroit.

The current 4.0-litre six-cylinder engine is available in standard petrol form, while a dedicated LPG version and a potent turbocharged variant producing 270kW and 550Nm are also produced.

Ford Australia?s in-line six-cylinder engine dates back to 1960 with the first Falcon, although the smooth 4.0-litre twin-cam powerplant being produced today is a world away from the 2.4-litre unit that was first used.

Throughout the years, more and more parts of the Ford Australia six-cylinder engine have been sourced from overseas.

Back in 1960, almost all of the engine components were produced or at least machined in Geelong.

Now, only the block, crankshaft, oil-pan and rocker cover are made there.

Ford Australia used today?s announcement to confirm it was also looking at other possibilities to increase production levels at its Campbellfield manufacturing plant.

GoAuto believes the assembly of a new model from imported components is currently being evaluated.

Mr Gorman would not comment on exactly which vehicle Ford Australia planned to build at the plant, but said the company was ?working on the next step to build its business?.

?We are currently investigating a number of alternatives that will allow us to return our Campbellfield manufacturing facility to 100 per cent capacity," said Mr Gorman.

Edited 18/07/07 08:20 AM by Dagabond

[JoeG]

600 Ford workers to lose jobs in 2010

July 18, 2007 12:35pm - news.com.au

FORD'S engine plant in Geelong will close in 2010, shedding 600 jobs, federal Industry Minister Ian Macfarlane has confirmed.

Ford is yet to make an official announcement, but Mr Macfarlane today said he had known for about a month and a half that the move was likely.

He received official confirmation a few days ago, he said.

"In response to that, the Commonwealth and Victorian governments are today announcing an innovation and investment fund to cover the Geelong area,'' Mr Macfarlane said.

The Federal Government will contribute $15 million to the fund, and the Victorian Government $6 million, he said.

"As well as that Ford have agreed with the commonwealth to establish a $3 million community fund and that is to assist those people that will now face a very difficult situation as the plant is wound down in 2010 and Ford moves its next model Falcon to a V6 engine.''

Mr Macfarlane said the fund was to attract other business to the Geelong region.

He said he was not aware of any plans to shed more jobs from Ford's Broadmeadows plant in Melbourne.

"We are confident about the future situation of the Australian car industry,'' he said.

Asked whether the Government had tried to convince Ford not to close the plant, Mr Macfarlane said: "We had a long discussion with Ford but I think it needs to be understood that the commonwealth did step in in 2005 and provide Ford with $28 million ... to assist them in trying make the current in-line six cylinder engine more efficient.''

Ford Australia was first established in Geelong, Victoria's second largest city, in 1925.

The company was scheduled to address workers at the plant at 1pm (AEST). A media conference was expected to be held after that meeting.

[our06t]

:oohwoah:

it's taken them the best part of 20 years to recover from when they stopped making their last great engines 351 clevo and windsor .I guess their like repeting bad decisions of the past

but hey it can only make the xr6t more collectable in the future

[f-wolf]

:oohwoah:

it's taken them the best part of 20 years to recover from when they stopped making their last great engines 351 clevo and windsor .I guess their like repeting bad decisions of the past

but hey it can only make the xr6t more collectable in the future

About the new V6 Engine,

Lovers of the local XR6 Turbo and the FPV Typhoon should not be concerned about the possible death of the Geelong-made inline six, which has made the six-cylinder performance Falcons V8-killers of the first order.

The Cyclone has already been developed in twin-turbo form, with direct injection as well, laying the groundwork for another respectable performance car.

[Dagabond]

This is near enough to the worst peace of news I've read this year and disgusts me to the bone.

The government gave millions to these pricks yet they still decide to close the doors rather than seeking an alternative and keep all those people employed, this move will devastate the community of Geelong.

I cannot wait to get rid of this car now and never buy another Ford again....although the alternatives are pretty bleak as well.....

[saleen]

This is near enough to the worst peace of news I've read this year and disgusts me to the bone.

But does it suprise you Dags?

I knew Tom Grogan was sent over to replace Polites for a reason.

It was only a matter of time.

Funny enough, I was only driving past the Geelong plant the other day when I thought of you XR6 turbo stooges.

Oh well, suppose the V8 is next to go, and we'll all be driving round milk bottles like the Euros do before too long.

Beep Beep

[TurboDewd]

This is near enough to the worst peace of news I've read this year and disgusts me to the bone.

The government gave millions to these pricks yet they still decide to close the doors rather than seeking an alternative and keep all those people employed, this move will devastate the community of Geelong.

I cannot wait to get rid of this car now and never buy another Ford again....although the alternatives are pretty bleak as well.....

agreed its not the best to hear the engine will no longer be built in Oz, but hey, we are a small fish in the automotive world. we do punch above our weight though.

the 3.5L twin force engine sounds good for 2010

shame they could develop an aluminium block for the 4.0L inline 6...I guess its cheaper for Ford, esp considering the decline in large car sales as the market is more competitive.

[JimmyXR6T04]

I guess that means I'll be keeping this car longer.. or trading for the orion model.. or HSV.

I wonder if the price of a falcon will come down after 2010? with so many more engines being produced, one would think it would be cheaper for ford australia, particularly when it comes to R&D.

[saleen]

So a big ole Tezza is gunna have a small V6 with less torque than current.

That sounds great.

[Dagabond]

But does it suprise you Dags?

Not really Rob...

Nice of you to call in and say HI...

Gorman needs to remove his head from between his butt cheeks and get a sniff of the real world before it all implodes on him........