Ford Australia to cease local manufacturing in 2016

Ford Australia has announced it will cease local manufacturing operations at its Geelong and Broadmeadows plants in October 2016.

The company says the decision was driven by “increasingly challenging market conditions”, including the high cost of manufacturing in Australia. Ford losses in Australia in the last five years have totalled approximately $600 million.

“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” said Bob Graziano, president and CEO of Ford Australia.

Around 1200 Ford employees will be made redundant when the Broadmeadows and Geelong sites cease manufacture in 2016. The company says it will work with employees and unions on support arrangements and provide clarity about the closure process.

Ford will continue to employ more than 1500 people in product development and dealerships after the manufacturing plants close.

“All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting-edge technology at an affordable cost,” said Graziano.

“Unfortunately, due to challenging market conditions we are unable to do that longer term while continuing to manufacture locally.”