Industry Alert - Manufacturing: Ford Announces Shutdown

Corporate Finance & Restructuring

May 25, 2013

Ford has manufactured vehicles in Australia since 1925, but yesterday Ford Australia announced its intentions to “accelerate its business transformation plans” in Australia, which will result in the closure of its remaining manufacturing plants at Broadmeadows and Geelong.

Mr Robert Graziano, CEO of Ford Australia announced that local production of the Falcon and Territory models, unique to Australia and assembled using a substantial amount of locally manufactured components, will cease after October 2016. The Falcon nameplate would be retired when production in Australia ceased, however the fate of the Territory has yet to be sealed. However, data for April 2013 from the Federal Chamber of Automotive Industries indicates both the Falcon and Territory models were not in the top 10 best selling cars in Australia for that month.

The closure of the Broadmeadows and Geelong plants will see 1,200 jobs made redundant, however Australian Manufacturing Workers Union (AMWU) Assistant State Secretary, Leigh Deihm estimated that the losses could be as high as 1,600, not taking direct component suppliers into account.

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