Ford Australia To Cut 640 Jobs

PETE_XR6 · 03-11-2006, 02:12 PM

WWW.THEAGE.COM.AU

Ford to cut 640 jobs

November 3, 2006 - 1:44PM

Ford Australia will axe 640 jobs from Victoria as declining sales forces it to cut its daily new car production.

The car maker, which employs about 5500 workers at its Broadmeadows and Geelong plants, said the job cuts would be voluntary and come from across the business. Most of the redundancies would take place by Christmas.

Ford last month announced it was cutting its daily new car production from 450 to 360 by November 20. The company blamed rising petrol prices and increased global competition for the decline in demand for large cars.

Spokeswoman Sinead McAlary said workers would receive a competitive industry standard redundancy package that had been negotiated with unions. She would not say how much the redundancies would cost Ford. She also would not say if the company had a target for how many workers from each division would go.

Ms McAlary said the company was committed to its Australian operations, with its executive chairman, William Ford jnr, last week dedicating a new research and development centre in Geelong.

"We are still investing in Australia, we are still planning to build the next Falcon," she said.

"It is simply about making our production rates and the size of our business match what is current market demand."

Australian Manufacturing Workers Union state secretary Dave Oliver said the job losses were the latest in a long line of manufacturing problems that would only get worse.

"These 640 job losses at Ford are another devastating blow to manufacturing in this country," he said.

He called on the Howard Government to work with the states, businesses and unions to save the manufacturing industry.

Ford last month reported its worst financial results in more than 14 years, posting a loss of $US5.8 billion ($A7.7 billion) for the third quarter.

Kenster · 03-11-2006, 02:15 PM

It wouldnt be long until GM Australia may face it or other manufactor since we are losing more jobs and completition for jobs get harder and harder due to less experience workers are here

uranium_death · 03-11-2006, 04:23 PM

It's a sign of the times.
Things will pick up. Just a case of being patient, as well as hopeful.

SVT8 · 03-11-2006, 04:31 PM

just saw it on the news, over 600 hundred jobs lost at the geelong and campbelfield ford factories.

Gadgetman · 03-11-2006, 04:59 PM

Quote:

Originally Posted by uranium_death

It's a sign of the times.
Things will pick up. Just a case of being patient, as well as hopeful.

It is a sign of changing times. But even more scary is when china gets into full swing auto manufacturing. That would make the business case for manufacturing vehicles in australia a hopeless one. We must thank our politcians for this screw up. They should have never reduced the excise margins on imported products. Another great idea from the Howard Government.

Bill_R · 03-11-2006, 05:17 PM

Quote:

Originally Posted by Gadgetman

It is a sign of changing times. But even more scary is when china gets into full swing auto manufacturing. That would make the business case for manufacturing vehicles in australia a hopeless one. We must thank our politcians for this screw up. They should have never reduced the excise margins on imported products. Another great idea from the Howard Government.

shame we haven't developed an alternate fuel technology like 100% ethanol that we could sell to China. I think Holden exports cars to Brazil that will run on 100$ ethanol. Sell the cars, sell the ethanol we produce and then sell the technology. what a misssed market!

vztrt · 03-11-2006, 06:26 PM

Quote:

Originally Posted by Bill_R

shame we haven't developed an alternate fuel technology like 100% ethanol that we could sell to China. I think Holden exports cars to Brazil that will run on 100$ ethanol. Sell the cars, sell the ethanol we produce and then sell the technology. what a misssed market!

It's 85% or E85.

This happens in the car industry and FOA need to do this to survive. Hopefully with the LHD/RHD grant that was given to Ford earlier in the year will allow they to find an export market overseas and build more cars.

Rob · 03-11-2006, 05:51 PM

Quote:

Originally Posted by Gadgetman

It is a sign of changing times. But even more scary is when china gets into full swing auto manufacturing. That would make the business case for manufacturing vehicles in australia a hopeless one. We must thank our politcians for this screw up. They should have never reduced the excise margins on imported products. Another great idea from the Howard Government.

I couldnt bring myself to buy a car that said 'Made in China'.

rodderz · 03-11-2006, 07:48 PM

Quote:

Originally Posted by BLC

I couldnt bring myself to buy a car that said 'Made in China'.

Me too, it would be good if there were some sort of campaign started again to buy Australian like they did years ago, it's piece of mind for me to buy local stuff even if you pay a few more bucks for it. Unfortunately it's the way people work though to get the best deal on whatever they buy, and if the Chinese products come up in quality with not much price rise, the local scene will be pretty much screwed

DanielXR8 · 03-11-2006, 11:31 PM

Quote:

Originally Posted by rodderz

Me too, it would be good if there were some sort of campaign started again to buy Australian like they did years ago, it's piece of mind for me to buy local stuff even if you pay a few more bucks for it. Unfortunately it's the way people work though to get the best deal on whatever they buy, and if the Chinese products come up in quality with not much price rise, the local scene will be pretty much screwed

This all means that Ford should take this opportunity to raise their quality and shakeup and eliminate the deadwood in their dealer network. They need to not only have new product with the Orion Falcon, but a new attitude to customer service as well. Toyota in particular will continue to kick their collective ***** until they realise that you and me and everyone else who buys a Ford, deserves a better experience from the showroom floor, through to the day we sell our cars.

Bud Bud · 07-11-2006, 04:30 PM

Quote:

Originally Posted by rodderz

Me too, it would be good if there were some sort of campaign started again to buy Australian like they did years ago, it's piece of mind for me to buy local stuff even if you pay a few more bucks for it. Unfortunately it's the way people work though to get the best deal on whatever they buy, and if the Chinese products come up in quality with not much price rise, the local scene will be pretty much screwed

Yeh but would it work? The majority of the buying public just don’t care. There used to be a factory in Hendon S.A. that made TV's (Phillips I think) but people just kept buying Japanese (China is the new Japan) until they had to close the factory down circa late 70's.

It doesn’t have to be the Chinese either, in the early 90's New Zealand’s Fisher Paykel aggressively launched a range of home appliances with some products barely meeting Australian design rules at the time. Everyone loved them. In 1994 Simpson in an effort to stave off growing competion, rationalised its fridge line operations and moved it out of Adelaide (where they had been making fridges there since Adam was a boy) to Orange NSW, and now they are closing the cook range plant in Adelaide altogether. How safe is the fridge line in Orange now???

Of coarse this not entirely Fisher Paykels fault but people still bought up these goods in preference to our Australian equivalent Products. How many here have a Fisher Paykel appliance at home? If these were Simpson or Kelvinator instead would that have made a difference over all???

We have had all these buy Australian campaigns before but we still keep finding ourselves in this mess. Why??? It seems that nobody (except Dick Smith) seems to really care.

4.9 EF Futura · 03-11-2006, 06:00 PM

Quote:

Originally Posted by Gadgetman

It is a sign of changing times. But even more scary is when china gets into full swing auto manufacturing. That would make the business case for manufacturing vehicles in australia a hopeless one. We must thank our politcians for this screw up. They should have never reduced the excise margins on imported products. Another great idea from the Howard Government.

Yes and the availability of un protected markets (i.e. lower prices for Australians for all sorts of goods) is just criminal as well.

Understand your sentiments, gadgetman - but there's two sides to trade restrictions.

Not everyone wants a Commdore/Falcon/Camry/380. No one should be forced into supporting a local manufacturer - these companies should be able to present a manufacturing solution that can stand on its own two legs.

MYV8 · 04-11-2006, 08:47 AM

Quote:

Originally Posted by 4.9 EF Futura

No one should be forced into supporting a local manufacturer - these companies should be able to present a manufacturing solution that can stand on its own two legs.

Not all that easy when the minimum wage, superannuation, workers comp, etc are SET at the levels they are.

Everyone likes to pay a low price for imported goods, but what is the real saving, or cost, to our country.

Just my 2c.

4.9 EF Futura · 06-11-2006, 06:37 PM

Quote:

Originally Posted by MYV8

Not all that easy when the minimum wage, superannuation, workers comp, etc are SET at the levels they are.

.

Agreed.

Hopefully some of the members i regularly engage in discussion with may be able to identify the link between job losses (which many despise) and the need to improve productivity (which many despise).

This is exactly the outcome that a more flexible workplace could help us avoid. And no, im not talking about reducing wages - that's a band aid fix.

Now is the time to get a final answer from the people of this country - do you want to have your cake and eat it too?

banarcus · 03-11-2006, 10:01 PM

Quote:

Originally Posted by Gadgetman

We must thank our politcians for this screw up. They should have never reduced the excise margins on imported products. Another great idea from the Howard Government.

Actually, it would be a result of the Button Plan, Senator John Button conducted an inquiry into our car industry and the poor quality of product etc. The plan was to drop the import tariffs on overseas vehicles, making them cheaper and forcibly making our domestic car makers make quality motor vehicles. John Button was a labor senator in the Hawke/Keating government.

MO · 03-11-2006, 10:40 PM

And I posted in another thread ages ago...soon our Fords will be made in China.

vztrt · 04-11-2006, 12:49 PM

Quote:

Originally Posted by MO

And I posted in another thread ages ago...soon our Fords will be made in China.

Actually they would be South African as the infrastructure is already there.

Quote:

Originally Posted by DanielXR8

This all means that Ford should take this opportunity to raise their quality and shakeup and eliminate the deadwood in their dealer network. They need to not only have new product with the Orion Falcon, but a new attitude to customer service as well. Toyota in particular will continue to kick their collective ***** until they realise that you and me and everyone else who buys a Ford, deserves a better experience from the showroom floor, through to the day we sell our cars.

While the idea is good, Ford dont actually control the dealer network. They are there own organisation.

RSgerry · 04-11-2006, 07:00 PM

Quote:

Originally Posted by uranium_death

It's a sign of the times.
Things will pick up. Just a case of being patient, as well as hopeful.

Things arent going to pick up any time soon. Fuel isnt going to get any cheaper and fleets are starting to realise the sense of using smaller vehicles for many of their employees. Add to that the Ford dealer poor service record and the fact that the private buyer is deserting the Falcon in droves and things dont look good at all.

HSE2 · 03-11-2006, 05:01 PM

:( ....

ClevlndStemer · 03-11-2006, 05:47 PM

its a shame but its a cut throat industry and Ford seem to be on the back foot at the moment. Toyota and Holden have just released decent product and it is expected that the dated falcon will struggle.

AUIII XR8 MAN · 03-11-2006, 06:06 PM

It's a shame this has happen.

sfr rob · 03-11-2006, 06:34 PM

We have a wonderful government that stands back and does nothing dont we?!
This really makes my blood boil, i actually felt for the poor buggers that have been there for 30+ years, and are just thrown out on there ****'s.

I Think all this really boils down to is the importation of parts etc from china etc at a quarter of the price and making companies on our land shut up shop because they simply cant compete. The flow on has a huge impact. Being in the transport industry we feel it BIG TIME.
This year has been one of the slowest years in the last 10 years.
And this year.. how many BIG Companies have closed there doors, or sacked half their work force?

I dont know what could be done, but something HAS to be done to save our jobs.

vztrt · 03-11-2006, 06:37 PM

Quote:

Originally Posted by sfr rob

We have a wonderful government that stands back and does nothing dont we?!
This really makes my blood boil, i actually felt for the poor buggers that have been there for 30+ years, and are just thrown out on there ****'s.

I Think all this really boils down to is the importation of parts etc from china etc at a quarter of the price and making companies on our land shut up shop because they simply cant compete. The flow on has a huge impact. Being in the transport industry we feel it BIG TIME.
This year has been one of the slowest years in the last 10 years.
And this year.. how many BIG Companies have closed there doors, or sacked half their work force?

I dont know what could be done, but something HAS to be done to save our jobs.

You do realise that GM, Ford and Toyota agreed to the drop in import tax. They get alot of money from the government as a result of this.
Also the employees arn't being told to leave but are getting enticed with a very nice offer if they want and if Ford want them to leave.

4.9 EF Futura · 03-11-2006, 06:51 PM

Quote:

Originally Posted by sfr rob

We have a wonderful government that stands back and does nothing dont we?!
This really makes my blood boil, i actually felt for the poor buggers that have been there for 30+ years, and are just thrown out on there ****'s.

A tad melodramatic dont you think?

We really play on this 'poor buggers' thing dont we?

If you'd even bothered to read the article, you would have seen that the offer would be made for voluntary redundancies. Bet your bottom dollar that plenty of these 'poor buggers' will happily put their hand up, receive a nice package and move on with their life. Im sure you would join me in wishing them all the best - as i would for anyone who is moving on.

And just to make sure that im not taking you out of context, i point to this bell ringer:

"and are just being thrown out on their *****"

This equates to voluntary redundancies?

I think what this really "boils down to" is that people are realising they dont need to purchase a vehicle with a large 6/8 cylinder engine nor do they want to support the additional cost of fuelling/registering/insuring such vehicles.

This is supported by the sales data.

The fact that you sit there and insist "the government do something" in the same breath as admitting you dont know what to do is pretty poor mate.

Here's a solution:

In conjunction with the union and the workforce, let a few hundred people go now and prolong the longevity of the 4900 employees that will remain.

Hang on, i think someone's already thought of that.

Or do you prefer the American model where everyone pretends it's all OK and we wait for the 'insolvency' word to start getting thrown around?

Are we seriously going to blame the government every time someone loses a job in this country?

What about the millions and millions and millions that federal and state governments have donated to the industry over the many many years? Yeah... they stand back and do nothing, huh?

Hate to break it to you, but fluctuating workforce sizes have been around since the industrial revolution. They're as much a part of this funny thing called life as any positive aspect you care to think of.

XRQTOR · 03-11-2006, 06:52 PM

Quote:

Originally Posted by sfr rob

The flow on has a huge impact. Being in the transport industry we feel it BIG TIME.
This year has been one of the slowest years in the last 10 years.
And this year.

My old man owns his own transport company and for the last 3 year's running we have more than doubled in size, we actually carted sheet metal product's for one company who was making them for holden ford but no longer do it.

RIPGMH · 03-11-2006, 07:02 PM

I'm no fan of Howard but he has delivered, in economic terms 6% is zero unemployment. There's a huge lack of skilled and even semi-skilled workers in this country. If you want to blame someone for job reductions blame OPEC

Outbackjack · 03-11-2006, 07:08 PM

Things will only "get better" when all the cheap (read slave) labour countries are exhausted. Simply put, when India and China become too expensive, companies will move on to Africa. And then probably Australia, because by then we will be a third world labour rate country with sweat shops.