Major Ford announcement

[mcnamg]

Press Release from Ford Website

http://www.ford.com.au/about/newsroo...=1249024395989

Important announcement from Ford Australia
Thu, May 23, 2013
Ford Accelerates Australian Business Transformation
Ford is transforming its Australian business by accelerating the introduction of new products for Australian customers, enhancing the sales and service experience, and improving its business efficiency and profitability
To better position the company to compete in a highly fragmented and competitive market, Ford will cease local manufacturing in October 2016. All entitlements are protected for the 1200 employees whose jobs are affected, and the company will work through the next three years to provide support
Ford will proceed with plans to launch updated versions of the Falcon, Falcon Ute and Territory in 2014, as well as offering other world-class products, such as the Ford Kuga, Ranger and Focus. The company will also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016
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
MELBOURNE, Australia, 23 May 2013 – 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 1200 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.”
Future vision for Ford Australia
While the way Ford is structured is changing, Ford’s commitment to Australia remains strong.
“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,” said Graziano. “The Australian team’s role as a global centre of excellence for vehicle development also will continue to be an important focus for us.”
Australia is currently one of four product development hubs for Ford globally. Recently, the Australian team has been responsible for designing, engineering and testing global vehicles, including the Ford Ranger and Ford Figo, and will continue this expertise.
Today, Ford has more than 1000 team members in product development in Australia, giving the company more designers and engineers than any other auto company in Australia.
“Our customers will buy and service Ford vehicles through the same great dealers we have throughout the country today, and we will continue to support the communities in which we operate,” said Graziano.
Decision follows comprehensive review process
Given the changing dynamics of the auto industry, a number of business scenarios were reviewed during the past year to determine next steps for Ford’s Australian business.
All viable alternatives were evaluated as part of the process including manufacturing various types and combinations of vehicles for local sale as well as the viability of a significant export program. The scenarios investigated also included varying levels of government support, manufacturing cost reductions and productivity improvements.
Australia has annual sales of approximately 1.1 million new vehicles, and customers have access to more than 65 brands and 365 models available for sale. This makes Australia one of the most competitive and crowded automotive markets in the world.
“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” said Graziano.
More New Products
As part of the transformation, Ford has aggressive plans to introduce even more new products for Australian customers – including a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016. That is in addition to already announced new versions of the Ford Falcon, Falcon Ute and Territory, as well the new Ford Kuga, Ranger and Focus.
“We will be introducing a number of exciting new vehicles and technologies during the next few years that will excite our Australian customers,” said Graziano. “The breadth of our line-up will increase by more than 30 per cent, ensuring we continue to offer our customers an outstanding range of cars, SUVs and light trucks long into the future.”
Upgraded Sales and Service Experience
Ford also is significantly enhancing its approach to the sales and service experience. The company has appointed a dedicated Consumer Experience team to introduce a series of initiatives to provide customers with even better after-sales care.
“We have a range of projects under way to significantly enhance our customer’s experience with Ford,” said Graziano. “This includes one of the only programs in Australia that provides a capped price on all servicing costs for seven years.”
Ford continues to be part of Australian communities
“Ford vehicles have been part of the automotive landscape in Australia for almost 110 years and we have manufactured here since 1925. We are proud of that history. We are proud of our role in Australia and we haven’t made this decision lightly.
“Overall, we are changing, but our commitment to Australia remains strong. We’ll move through this transition and continue to be a vibrant and strong part of the Australian driving experience,” said Graziano.

[Mighty Reds]

FFS Ford give the Falcon what it deserves and send it off with a BANG!!.

[WayneHadfield]

Originally Posted by Resurrection

I've been telling this forum for the last five years that 2016 is the end but most people did not want to hear it.

Well, congratulations.

[The Snout]

Glad people on here aren't giving Ford a free pass and blaming the buying public for everything. The onus is on a company to bring a product to market, promote it, make it competitively priced/equipped and not least make it relevant to what people want.

Ford have failed to do this on the Australian made products. Even recently they responded to the opposition leader's visit and opinion that Territory was a great car with an attitude that it was just all to hard to bother to export. Ok, sounds like the decision was already made but I found that really negative by Ford.

With a 3 year lead time, hopefully it will give workers time to reskill and make other arrangements.

And I'll buy Australian made after 2016 , Holden or Toyota.

Guess this theory that automotive will collapse if any of the big 3 left will now be tested.

[2011G6E]

"Their brand is dead to many people"...?

Maybe, but realistically it is only for the tiny percentage of people these days who are badge-blind, or who don't accept any other Ford than one with a "Falcon" badge on it...

They have to build what people demand...we only owned our G6E for two years. ..I was bitterly disappointed by what it didn't have for what was supposed to be a "premium" model. Do a search on this forum, you'll see plenty of Ford fans who also knock Falcons about various points.

People don't buy purely on badge anymore, and haven't for many years...gone are the days of just taking anything the maker throws out the door simply because it has a Ford badge on it.

[SeduceXR]

No surprise when you hear such quotes from the press conference:

"Ford boss says manufacturing in Aus costs double what it does in Europe, and four times what is costs in Asia"

[GT-spec15]

Well said Snout.

I know this is a Ford site and many will get nostalgic and teary eyed, but at the end of the day Ford is a business, and when an arm of a business ceases to be viable, it gets chopped.

Life's a *****.

[BroadyFord]

Graziano confirms ford AU cost structure "double that of Europe".

Shoots down the myth of cheaper wages than Europe/Canada etc people on this forum have been banging on about.

[Outbackjack]

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

[GT-spec15]

Originally Posted by Outbackjack

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

What a ridiculously simplistic assessment of the situation.

[TC200six]

I'm not teary eyed as we knew it would happen one day. Shame though.

[gumbi_18]

Originally Posted by Mighty Reds

FFS Ford give the Falcon what it deserves and send it off with a BANG!!.

This. Finally dust off the GTHO badge and give the Falcon one last hurrah.

[2011G6E]

Originally Posted by Outbackjack

This is what happens when governments force Australian companies to compete on a level playing field. Sadly the field was anything but level.....

Never has been, never will be...unless of course people are prepared to live on much smaller wages and live in poverty to help the car makers try and sell an unpopular product.

Big cars are on the way out...people said in in the late seventies, and it proved to be false. People said it in the eighties and nineties, and it was sort of wrong. But it's been downhill this century..."small" cars aren't that small anymore...medium cars are as large inside as "big" cars used to be in Australia. Despite claims to the contrary from enthusiasts, buyers couldn't care less if a car is front wheel or rear wheel drive, as long as it's well equipped and drives nicely and, importantly, is priced sharply.

[RAPID_BA]

If the government wants to save all those jobs, save local production, then give people a tax concession for buying an aussie made brand new car. Effectively lowering the cost to purchase.

Businesses and individuals would jump on it.

The government wont even really lose out as all those wages employed in the aussie production paying them tax as well as company profits and supplier chain..

GOVERNMENT GIVE INDIVIDUALS AND COMPANIES TAX CONCESSIONS WHEN BUYING AUSSIES MADE CARS!!!!!! ITS A WIN WIN!!

[Polyal]

Man..I just have so much anger at Ford NA right now its numbing. If they come out with a GWRD sedan within the next couple of years I will flip out.

[mcnamg]

I wonder how long before Holden makes a similar announcement. I would think that Holden would have to review their options for local manufacture now Ford is going to be out of the picture as they will need to increase the overseas content in their vehicles as local supplier prices will increase quite a bit as they raise costs to cover the loss of Ford business. That's if the local suppliers can survive without Ford.

This is not a good sign for the continued local manufacturing of cars in Australia.

[Brazen]

Originally Posted by BroadyFord

Graziano confirms ford AU cost structure "double that of Europe".

Shoots down the myth of cheaper wages than Europe/Canada etc people on this forum have been banging on about.

He said costs not wages. Costs involve everything like electricity, gas, carbon taxes, red tape, transport etc.

And most manufacturing plants need volume to reduce the cost structure. Im suprised that the cost structure of the Ford AU plant which only made 30,000 cars last is only double the plants which pump out 250,000 cars a year.

[block58]

Falcon nameplate finishing in 2016, not being carried over to import model.

[EASYBOSS]

Originally Posted by GT-spec15

they made that stupid F6X thing.

I beg to differ, I glad they made it

[Terror_Tree]

Originally Posted by Terror_Tree

All I ask is they let the Falcon name die, please don't put a Falcon badge on a Taurus.

Just heard, the Falcon name end in 2016

[EFFalcon]

aaaaaaaaaand the dollar dips further

[my_gxl]

Originally Posted by Kable72

Everyone article I have read, the same phrase pops up "Ford has not officially confirmed any closures"

Everyone stfu and wait until the press conference before you get your shovels out to bury yourselves.

With a new model coming out in 2014 why on earth would they announce a closure of doors in 2016. I can see it two ways, to make people buy it cos it's the last one OR people won't buy it cos it's the last one so when the doors close parts will be few and far between.

They still have to keep 10 years worth of parts I believe.

Old fords are still going, and the way I see it, the values of the last falcon won't drop as quick since you can't get a new one.
I will try save my pennies to get one of the last ones.

The mustang might actually come here as a RHD RWD option.

I will NEVER give in to a GM product. I will just keep my XR8.

Just watched the press conference...

The update will go ahead-good.

FPV continuing-no idea-not good

Motorsport-no real idea either-not good.

[MickyB]

So does 30% more product mean we will definitely get Mustang? And possibly Taurus and F-truck? Mustang on sale for a reasonable price would be a small consolation for losing our beloved Falcon.

[mik]

Not the first company to close down , sadly probably wont be the last, no one will continue banging their head against the wall trying to make a dollar when the they can import cars cheaper, i just heard on the radio over period x ford oz lost 600 million dollars, the next question is will holden or toyota be next?

[duaned]

I'ts now time to save the pennies and buy new the last of an aussie icon, The Falcon! And I hope others on this forum & the public follow!

[GT-spec15]

Originally Posted by EASYBOSS

I beg to differ, I glad they made it

You would be in the minority.

It was a stupid product that delayed their foray into fuel efficient technologies.

You might say producing the F6X demonstrated that Ford's business model and direction was doomed to fail.

[GT-spec15]

Originally Posted by duaned

I'ts now time to save the pennies and buy new the last of an aussie icon, The Falcon! And I hope others on this forum & the public follow!

I look forward to silly people snapping up GTs in 2016 and trying to sell them at 150% of RRP in 2017 as a "future classic bound to appreciate in value".

[my_gxl]

Originally Posted by 2011G6E

They said 85% of cars people purchase here are "built overseas". Once again, you can't blame them...why pay a premium for a lower-equipped car purely because it's built here? My loyalty is my hip pocket, and I'm not going to purposely put myself out of pocket for something with less equipment and which is dearer to run just because it says "made in Australia".
If it has the same or better equipment, and is cheaper, then I'll buy it, but Ford (and Holden) haven't managed to do this with their big cars.

The same can be said for anything made or grown in Australia.
Manufacturing, and the farmers are stuffed.
I try buy local at the supermarket.
I have only purchased one vehicle new, and it was an AU ute.
Stupid Gillard Government.

[babyf6]

Hopefully I will be able to get one after I leave school, sad day for Australia, I just want the bad news to go away.....

[graham7773]

Can't blame Ford, $600.000.000 lost in the last 5 years, $141.000.000 lost last year alone.
Chrysler and Mitsubishi come to mind.

True Blue
Give it to me straight
Face to face
Are you really disappearing,
Just another dying race,
Hey True Blue
(credit John Williamson)