Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 27th May 2013, 19:07   #1
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 8,025
Thanked: 3,483 Times
Unhappy Ford to shut plants in Australia. EDIT: Now, Toyota too

Came across this news of Ford shutting down its plants in Australia following inability to compete with Asia.

Excerpt from article
Quote:
Ford Motor Co. (F) will stop making cars in Australia, nine decades after founder Henry Ford first began building Model Ts in the country, as a surge in the currency undermines the local industry’s ability to compete with imports.

Ford Australia faces costs double those in Europe and four times those of its Asian divisions, local President Bob Graziano told reporters today. He announced the loss of 1,200 jobs from October 2016 at two plants in Melbourne and Geelong.

Australia’s three car makers have struggled as a 27 percent rise in the local dollar against the yen over the past year stoked sales of cheaper imported vehicles and cut exports. The closure of one threatens the viability of the whole industry and is a blow to Prime Minister Julia Gillard, whose Labor party is trailing in polls ahead of a Sept. 14 election.
Link to article :
http://www.bloomberg.com/news/2013-0...r-reports.html
benbsb29 is offline   (1) Thanks Reply With Quote
Old 27th May 2013, 21:50   #2
Distinguished - BHPian
 
karan561's Avatar
 
Join Date: Aug 2006
Location: Mumbai
Posts: 3,753
Thanked: 9,196 Times
Default Re: Ford to shut plants in Australia

Only the manufacturing facilities are shutting down by October 2016.

Ford has announced that they are going to maintain aprox 200 dealerships for Australia

Source: http://www.worldcarfans.com/11305235...n-australia-by
karan561 is online now   Reply With Quote
Old 28th May 2013, 10:55   #3
Senior - BHPian
 
rohanjf's Avatar
 
Join Date: Nov 2009
Location: Adelaide
Posts: 1,190
Thanked: 684 Times
Default Re: Ford to shut plants in Australia

Is Ford going to export cars like Fiesta and Ecosport from India? Ford could do that, and also launch more cars in India that are fit to be sold in Australia too.
rohanjf is offline   Reply With Quote
Old 28th May 2013, 11:06   #4
Senior - BHPian
 
jacs's Avatar
 
Join Date: Nov 2007
Location: Kochi
Posts: 1,464
Thanked: 715 Times
Default Re: Ford to shut plants in Australia

Looks like a new opportunity for its factory in Chennai or a new plant in India? I pray
jacs is online now   (1) Thanks Reply With Quote
Old 28th May 2013, 11:30   #5
BHPian
 
Maky's Avatar
 
Join Date: Feb 2013
Location: Mumbai
Posts: 737
Thanked: 322 Times
Default Re: Ford to shut plants in Australia

Quote:
Originally Posted by benbsb29 View Post
Came across this news of Ford shutting down its plants in Australia following inability to compete with Asia.

Excerpt from article


Link to article :
http://www.bloomberg.com/news/2013-0...r-reports.html
Why have you attached a sad face smiley : o ? Is it because of people loosing their jobs? or them loosing their plant after decades of presence. I suppose so.
Sorry being a businessman I can become a bit emotionless & selfish : ).
This is very good for India and other Asian manufacturer centres. Hopefully India will become an export hub to these places if they can achieve quality standards set forth.
Maky is offline   (1) Thanks Reply With Quote
Old 28th May 2013, 12:44   #6
BHPian
 
Daewood's Avatar
 
Join Date: Dec 2009
Location: Chennai
Posts: 943
Thanked: 223 Times
Default Re: Ford to shut plants in Australia

Quote:
Originally Posted by jacs View Post
Looks like a new opportunity for its factory in Chennai or a new plant in India? I pray
The setting up of the new factory is already progress, at Gujarat. By the time it becomes operational in a year, i guess the Australian plant will be shut.
Daewood is offline   (2) Thanks Reply With Quote
Old 28th May 2013, 14:18   #7
Zed
BHPian
 
Zed's Avatar
 
Join Date: Aug 2011
Location: Germany
Posts: 467
Thanked: 270 Times
Default Re: Ford to shut plants in Australia

Ford produces some unique vehicles in Australia with engines, V6s and V8s, that they've stopped producing at other locations. In the near future many of these engines/vehicles will be phased out on account of emission legislation and platform standardization plans at Ford which was probably the proverbial nail in the coffin for its manufacturing operation down under. There are some pick up's currently exported from Fords Auto Alliance Thailand to the Australian market. Ford will continue to sell in Australia but with a revised manufacturing strategy.
Zed is offline   Reply With Quote
Old 28th May 2013, 15:11   #8
Senior - BHPian
 
1100D's Avatar
 
Join Date: Jun 2006
Location: Calcutta
Posts: 4,179
Thanked: 2,360 Times
Default Re: Ford to shut plants in Australia

So what happens to the fabulous Falcon range of rear drive vehicles Ford manufactures in Australia? Will the be manufactured in Asia?

Would not like to see the Falcon BOSS 335's die.
1100D is offline   Reply With Quote
Old 28th May 2013, 16:29   #9
BHPian
 
SafeDrive's Avatar
 
Join Date: Jun 2010
Location: Chennai
Posts: 411
Thanked: 47 Times
Default Re: Ford to shut plants in Australia

Ford had consolidated it's design group in Australia. Friends of mine who were in India moved there. What happens to them? Are they also closing down and moving to other locations?
SafeDrive is offline   Reply With Quote
Old 28th May 2013, 17:39   #10
Team-BHP Support
 
benbsb29's Avatar
 
Join Date: Nov 2006
Location: Brisbane
Posts: 8,025
Thanked: 3,483 Times
Default Re: Ford to shut plants in Australia

Quote:
Originally Posted by Maky View Post
Why have you attached a sad face smiley : o ? Is it because of people loosing their jobs? or them loosing their plant after decades of presence. I suppose so.
Sorry being a businessman I can become a bit emotionless & selfish : ).
This is very good for India and other Asian manufacturer centres. Hopefully India will become an export hub to these places if they can achieve quality standards set forth.
From a business perspective, such moves are welcome. However, from the ground level these decisions do affect the brand perception in terms of their commitment to the local market, IMHO.

With global outsourcing and job cuts ruling the roost, such decisions are natural and to be expected.

Also, Ford has had a history of manufacturing in Australia since decades, so there are a lot of people who would be affected by this move, including suppliers.
benbsb29 is offline   (2) Thanks Reply With Quote
Old 28th May 2013, 19:16   #11
Zed
BHPian
 
Zed's Avatar
 
Join Date: Aug 2011
Location: Germany
Posts: 467
Thanked: 270 Times
Default Re: Ford to shut plants in Australia

Quote:
Originally Posted by SafeDrive View Post
Ford had consolidated it's design group in Australia. Friends of mine who were in India moved there. What happens to them? Are they also closing down and moving to other locations?
Not sure about the design group specifically, but the engineering team there will stay put. Until further notice I suppose. I am engaged in a project where a sub system for a global vehicle platform is handled by a team based in Geelong. Great guys to work with - I must add.

What's planned in Australia is pretty much in line with what Ford did in the UK where a lot of the manufacturing footprint moved to other locations like turkey (Ford Otosan) but core engineering continues to operate. For how long is anybody guess.

I do not expect that your friend will be packing his bags any time soon, well at least not on account of the new manufacturing strategy for the Australian market.
Zed is offline   Reply With Quote
Old 28th May 2013, 23:23   #12
BHPian
 
wantarangerover's Avatar
 
Join Date: May 2006
Location: Vadodara, IN
Posts: 154
Thanked: 134 Times
Default Re: Ford to shut plants in Australia

Is this part of the 'One ford' strategy? I have always thought that ford has done well to market themselves in different regions differently, with different products to boot. While the US got their mustangs and F150s, Europe got their own Ford cars like the focus, fiesta et al. So in Europe ford is a maker of affordable practical fun cars, while in the US, it has a different image. Then comes Australia, which had its own fords, the falcon v8 topping the list.

It would be sad to see these 'different' Fords merging into one - but then it had to happen someday, for practical reasons. As pointed out, It wont be happening overnight. And yes, it is a glorious opportunity for India and other Asian countries.
wantarangerover is offline   Reply With Quote
Old 30th May 2013, 11:07   #13
Distinguished - BHPian
 
phamilyman's Avatar
 
Join Date: Jul 2007
Location: Gurgaon
Posts: 5,601
Thanked: 3,452 Times
Default Re: Ford to shut plants in Australia

Here is how Australian labor costs are affecting the market:
http://au.news.yahoo.com/thewest/bus...jects-at-risk/

Note the demands: $245/day construction allowance (1 AUD was ~1.03 USD), four week on, four week off etc. It would seem that Ford would have similarly challenging cost environment facing them as well.
phamilyman is offline   Reply With Quote
Old 12th February 2014, 10:11   #14
BHPian
 
mints21's Avatar
 
Join Date: Nov 2013
Location: India
Posts: 735
Thanked: 1,181 Times
Default Toyota to exit manufacturing from Australia by 2017

A recent news item of Times of India has stated that Toyota Motors would stop making cars and engines in Australia by the end of year 2017.

Australia has already witnessed similar announcements by General Motors and Ford Motor last year.

This will result in massive job loss for people directly or indirectly involved in the automotive sector.

Huge set back for Australia which was once considered as a vibrant auto production base.

Link to the news item:

http://epaper.timesofindia.com/Defau...&ViewMode=HTML
mints21 is offline   (2) Thanks Reply With Quote
Old 12th February 2014, 12:39   #15
Senior - BHPian
 
rohanjf's Avatar
 
Join Date: Nov 2009
Location: Adelaide
Posts: 1,190
Thanked: 684 Times
Default Re: Toyota to exit manufacturing from Australia by 2017

If this trend follows, Australia will take cues from Indian rules and impose high taxes on CBUs and CKDs.

Which other big manufacturers build cars in Australia? I am guessing, only Volkswagen. Do Hyundai/Kia make cars in Australia, or just assemble them there?
rohanjf is offline   (1) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Cosworth comes to India! Sets up facility in Pune. EDIT: Now shut down GTO Modifications & Accessories 81 20th May 2014 19:58
Toyota Liva TRD Sportivo. EDIT : Now for Etios too! 1100D The Indian Car Scene 57 12th March 2013 22:12
Ford still in loss, to slash production, shutter plants junkishya The International Automotive Scene 3 2nd November 2012 00:12
Delhi Traffic Police now on Facebook! EDIT: Now Goa too! Bubby Street Experiences 21 22nd May 2011 02:34
Is Ford Closing 12 Plants in US??? narasimha raju The International Automotive Scene 4 24th January 2006 03:00


All times are GMT +5.5. The time now is 23:30.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks