This article was last updated on April 16, 2022
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Ford has decided to pull out of Australia, leaving 1200 Australian car industry workers and thousands more unemployed. The announcement made on Wednesday states that the company will shut its operations in three years.
Reportedly, 650 jobs will be lost at Broadmeadows, in northern Melbourne, while 510 employees will be laid off in Geelong as Ford’s two Victorian plants close. Ford first started manufacturing cars in Geelong in 1925.
While announcing the decision, Ford Australia president and CEO Bob Graziano explained on Thursday that the cost of making cars in Australia has become uncompetitive. He said the company has lost $141 million after tax in the past financial year, while the accrued losses sum up to $600 million over the past five years.
“Manufacturing is not viable for Ford in the long-term,” he said.
Representatives of Australian government approached the top leadership of Ford in Australia to extend support to the company. Victorian Premier Denis Napthine met with Ford representatives ahead of the announcement.
“They said it’s simply a matter of the cost of production here versus the declining market for their products,” Dr Napthine told the media.
On the other hand, the Australian Manufacturing Workers Union remains optimistic of the situation. Union’s National Secretary Paul Bastian believes that Ford will revert to operating in Australia if the government convinces the company and offers strategic support.
“It’s not too late for Ford in our view at all,” he said.
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