Ford To Axe 440 Jobs In Victoria

Mike Stevens | Jul 17, 2012

Note: article updated to reflect official Ford announcement and details.

Ford Australia has confirmed it will cut up to 440 jobs, or about 15 percent of its workforce, with plans to slash production from November forward from 209 vehicles per day, to 148.

Most of the losses will come from manufacturing operations at the carmaker's Geelong and Broadmeadows plants.

The reduced production and job losses are in response to the continuing slide in large car sales, Ford Australia President Bob Graziano said.

While sales of the locally-manufactured Territory remain strong (1800 in June), the Falcon continues its slide, with year-to-date sales down 24.6 percent compared to 2011.

Production will shift to a more profitable mix, focused largely on the Territory.

"Implementing this structural change is essential to ensure the longer-term health of the business," Mr Graziano said in a statement today.

"We understand that, unfortunately, the impact on our employees will be significant, but implementing this structural change is essential to ensure the longer-term health of the business, which is important for our employees, our suppliers and the communities in which we operate."

Graziano added that workers who take up the redundancy package will be offered training and counselling.

Today's announcement comes barely two months after a seven-day shutdown for the Broadmeadows and Geelong plants when parts supplier CMI ran into difficulties. It also follows the announcement of a $290 million loss in May.

Ford's market share in Australia has slipped to 7.9 percent year-to-date, compared to 9.1 percent at the same time last year.

Problems with parts supplier CMI have also had an effect on Territory and Falcon production.

Ford is not alone in its local production woes: Toyota in April cut 10 percent of its Altona workforce, blaming market conditions, and Holden confirmed in February that it would shed up to 100 temporary and casual contractors.

Ford secured a $103 million investment in local production and upgrades earlier this year, including $34 million from the Federal Government and an undisclosed amount from the Victorian Government.

The investment was expected to secure local production until at least 2016. For now, Ford remains committed to that goal, and new locally-produced models are scheduled to hit the market in 2014.

"We are committed to the Ford brand and continuing to produce vehicles in Australia," Mr Graziano said.

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Filed under: manufacturing, News, ford, ford australia, industry

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  • Binga! says,
    3 years ago
    1 like
    No surprise.

    An inferior product. No support from the US (unlike GM with Holden).
    Overpriced crap (excludes i6) and when you try to claim warranty on a Ford product you get told total BS. Ford has no customer support (after sales).

    This along with being associated with companies like Mindshare (GroupM) and Wunderman (Y&R) for it's advertising it's not wonder Ford can't sell a Falcon. Too much emphasis on Euro models (The Voice) and not on locally manufactured products. These agencies are happy to take your money. They don't give *** about your product or your reputation amongst enthusiests. The Ford Australia marketing team is run by a bunch of one track minded egotistic uni grads who have no idea WTF they are doing.

    Insiders say the Broadmeadows plant will be closed in 4 years, so of course they just keep taking TAX payer money and funnel it back to daddy in the US.
  • 5valvepercylinder
    5 valve per cylinder says,
    3 years ago
    1 like
    Honestly didn't even get to see Ford promote the Mondeo but there was a lot of Falcon and Territory ads on T.V./print media.
    You might argue about Focus and Fiesta but hey they are far more relevant now than Falcon.
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