Ford Slows Australian Production, Blames Fringe Benefits Tax Changes Photo:
TMR Team | Aug, 23 2013 | 11 Comments

Ford Australia has pointed the finger at Kevin Rudd's $1.8 billion Fringe Benefits Tax (FBT) overhaul in its decision to halt production this week, standing down several hundred workers yesterday and today on half-wages.

The production halt yesterday saw 500 workers sent home from Ford's Broadmeadows plant, along with a further 250 at the Geelong plant.

The carmaker has also confirmed plans for 12 days of production stoppages over August and September in response to slowed sales.

Ford says that six of those days are a result of the FBT changes, and Opposition industry spokeswoman Sophie Mirabella said this week that the production halt "should be the final nail in the coffin" for Labor's FBT plan.

It is likely however that Ford is also experiencing fallout from last month's announcement that it will exit Australian manufacturing in 2016, with Falcon sales having all but stalled in recent weeks.

MORE: FBT Changes Expected To Hit New-Car Sales Hard
MORE: How Novated Leasing And An FBT Perk Choked Australian Cars
MORE: Ford Australia Announces Production To End 2016
MORE: Ford CEO Alan Mulally Commits To Australian Ford Engineering Role

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