Ford to to stop making cars in Australia

Ford has announced that it will end all production in Australia in 2016, closing two plants which employ 1200 people. It has blamed the strength of the Australian dollar, high business costs, mounting losses and a declining market. The president of Ford Australia, Bob Graziano
By : Autocar India
| Updated on: 24 May 2013, 12:40 PM
Ford-to-to-stop-making-cars-in-Australia
Ford-to-to-stop-making-cars-in-Australia
Ford-to-to-stop-making-cars-in-Australia
Ford-to-to-stop-making-cars-in-Australia

Ford has announced that it will end all production in Australia in 2016, closing two plants which employ 1200 people.

It has blamed the strength of the Australian dollar, high business costs, mounting losses and a declining market. The president of Ford Australia, Bob Graziano, said, 'Our costs are double that of Europe and nearly four times of Ford in Asia.'

The manufacturer will shut its Geelong-based engine plant and its vehicle production facility in Broadmeadows, both of which are in the state of Victoria. Dealership and development facilities will remain open, however, and Ford will become an import-only brand. Among the vehicles produced at Broadmeadows are the Fiesta and the Falcon.

Trending Cars

Find More Cars

Ford has been active in Australia since 1925; last year it built approximately 37,000 vehicles but suffered a loss of £93m (around 775 crore). Graziano stated that Ford had lost, in total, £386.5m (around 3221 crore) in Australia over the past five years. The strong Australian dollar has made it difficult for Ford to sell its products at a competitive price against foreign rivals.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

It is expected that Ford will continue to participate in the Australian V8 Supercars series until at least 2016, despite it withdrawing its local manufacturing facilities.

First Published Date: 23 May 2013, 16:35 PM IST
TAGS:
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city