Ford to Shut Down Australian Production in 2016
The official announcement was made by Ford Australia’s CEO, Bob Graziano, during a press conference held in Melbourne yesterday. Citing the $141 million after-tax loss from the last financial year and a total loss of $600 million over the last five years, Graziano said that Ford’s Australian production is no longer viable and need to be shut down.
"Our costs are double that of Europe and nearly four times Ford in Asia," said Graziano. "The business case simply did not stack up, leading us to the conclusion that manufacturing is not viable for Ford in Australia in the long-term. Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” he added.
While production will end three years for now, the Blue Oval company will continue in Australia as an import-only brand. thus keeping some 1,500 employees in product development and other roles.
The end of Ford Australia as a local automaker also means that the iconic Falcon nameplate will be discontinued. The Falcon is the Holden Commodore’s main rival in both the automobile market and the motorsport sector.
Story via TheAustralian