Ford announces end of an era
Ford has announced the end of its car making business in Australia, with all manufacturing operations set to cease in October 2016 following an estimated $500 million loss over the past fiver years.
Citing difficult market conditions, such as market fragmentation, the high Australian dollar and the high cost of manufacturing, Ford announced it will cut 1200 jobs from its Broadmeadows and Geelong manufacturing plants.
“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.”
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.”