The End Of Ford Aus.

[Dagabond]

A SENIOR Ford executive in North America has spoken openly for the first time about the reasons behind the closure of the company's Australian manufacturing operations.

Ford North America president Joe Hinrichs inadvertently made the revelations while trying to explain why Ford's Canadian factories would survive - even though they too have a high cost base - and Australia's could not.

"Australia is isolated with an industry of about one million units. Logistically it is not a good location," Hinrichs told Canada's The Globe and Mail.

"The combination of the high Australian dollar and isolated location doesn't make it a good export base and not a big enough total (sales) volume industry to support manufacturing," Hinrichs said.

"The Canadian situation is a little different than Australia because there is enough volume in the total North American industry to support high-volume plants, which makes up for some of those other issues."

Ford Australia will close its Geelong engine and stamping plants and the Broadmeadows car assembly line no later than October 2016, axing 1500 jobs in the process. It will bring an end to 90 years of Ford manufacturing in Australia and see the Falcon name - the third oldest in the automotive world - become extinct.

But Ford's Canadian factories will survive because they are the doorstep of the world's second biggest car market, North America, whereas Australia had limited export potential due to the high value of the dollar, Hinrichs said. The increasing number of imported cars from low cost countries such as South Korea, Thailand and, soon, Indonesia also weighed on Ford's decision.

"I think we need to look at what's been going on around the world including in the United States ... look at what the costs are for the next generation of workers coming into the auto industry," Hinrichs told The Globe and Mail.

"We need government support that, by the way, happens everywhere in the world. We need to look for unique Canadian solutions, but at the same time move us forward to an overall more competitive manufacturing cost."

The revelations from the top levels of Ford management come as Holden has asked its factory workers to take a pay cut and find new efficiencies or risk shutdown. The Holden negotiations are due to end in August.

Meanwhile the Australian car industry has welcomed the return of Kim Carr as federal industry minister, following Kevin Rudd's return to the prime ministership.

"In politics, you don't often get a second chance," Senator Carr said in media statement. "I believe we can take courage from the tenacity with which our firms have weathered the storm."

"This is not the time to yield. It is the time to renew our commitment to workers and their future and to building stronger management of our firms and modernising our production processes."

http://www.news.com.au/business/ford-usa-boss-breaks-silence-on-australian-factory-shutdowns/story-e6frfm1i-1226673416214

If Holden can compete with international export why cant Ford?

[tab]

It's always mostly been about protecting the north american market hasn't it? The carnts would never say it but everything points to it.

[howitzer85]

3,750 per car average of what 2-300 cars a week.

If the numbers are that low they would have shut up shop long ago, sh*t I'm pretty sure ford are pumping out more then that.

I work at toyota and we're at 550 per DAY

[turbotrana]

I had the latest Ford Taurus for a few days in US. A few good features on it like keyless entry, touch buttons for the climate control and LED dash. You really wouldn't know that it was a front wheel drive when driven sedately. My car ran 255/19s. Engine idled smoothly but not that torquey. Overall it wont be that bad when you get the 4WD turbo model. In comparison our electronics are quite outdated in the FG. We have way too many buttons. Now I am driving a Chrysler 300m and the dash is so much simpler/cleaner with way less buttons also.However the Chrysler V6 is a bit rough at idle for my liking. The Ford straight 6 is much smoother.

[tab]

[ronburgundy]

Very shrewd move by Holden.

Puts the ball in Canberra's court "If you want to be single-handedly responsible for the complete demise of motor vehicle manufacturing in this country then keep your hands in your pocket". Can you imagine the public outrage if Expensive Daewoo now shut its doors?

Conversely if the Feds DO come to the party, they come out smelling like roses as saviours of a dinosaur industry!

[tab]

Indeed. But it's the best time for Expensive Daewoo to make the move - just before an election.

Will be interesting to see how it pans out, if there's votes to be gained in saving them then Ruddy will have his tongue that far up Devereux's arse it'll be tickling his tonsils. Abbott will probably just tell him to pack his plant up and fck off.

[Dagabond]

I'm struggling to understand in both cases why we are allowing the yanks to dictate to us that the joints need to be shutdown.

OBVIOUSLY they have controlling influences in both cases but this is affecting us as Australians and our future they couldnt give two fairy farts as to what happens here in country.

That and an immediate increase in tarriffs for all imports and both companies should get their collective heads out of their asses and move with the times and get some smaller cars on their production lines that the general populous are looking to buy.

[SuckSqueezeBangBlow]

its really about 'weaving the web' of international dependency.

in this case southeast asia will be the vehicle hub.

competitive advantage of nations ( <--google that) has changed somewhat.

[_Velocity_]

I'm confused. Are we still talking about Ford or just Expensive Daewoo and Toyota now?Ford was importing smaller cars (Fiesta, Focus and Mondeo) for the last few years to no avail.