Ford Motor Co. said Thursday that it would close its two Australian automobile plant in the country at the end of 2016 production, manufacturing costs skyrocketing and plummeting sales being.
In Victoria the U.S. carmaker's plant closure will mean the loss of 1,200 jobs, the company transformed into an only imported brands in Australia. Ford in 1925 began manufacturing cars in Australia, is the country's third largest carmaker.
"We understand that this will have on our team a very real impact," Ford Australia President Bob Graziano told reporters at the company's Melbourne factory. "We came to this conclusion only after a thorough review of our business, and have exhausted all other alternatives."
Australian dollar high national car manufacturer has brought pressure, making locally produced cars much more expensive than abroad. Last month, Ford's main rival, Holden, said it was cutting 500 jobs in the high dollar demand.
"Bear the strength of the Australian dollar and the Australian manufacturing industry manufacturing prosperity difficult environment, Australian Prime Minister Julia Gillard said:" Ford's announcement.
Despite the closure of 54 billion Australian dollars ($ 52 billion) by 2020, the automotive industry financial support. Last year, Gillard announced for Ford AU $ 34 million in subsidies. Australia has also funded General Motors Co., pledged nearly AU $ 275 million, the last year in order to ensure GM a decade continues to make cars in Australia Holden Limited, through its subsidiaries,
Ford also released its annual financial report, Thursday, suggesting that AU $ 141 dollars for the 2012 fiscal year loss after taxation. This is the second AU $ 290 million loss in 2011, the total loss of AU $ 600 million over the past five years.
Graziano said reduced demand for large cars and the production of high prices in Australia has left the manufacturing business uncompetitive. Ford's production costs in Australia twice, Europe and Asia nearly four times higher than Graziano said.
"Manufacturing Ford in Australia is not feasible in the long term," he said.
About 1,500 employees, including distributors and product development, will continue to work for the company, in October 2016 after the end of production.
Acting Industry Minister Craig Emerson said, Ford produced fewer than 40,000 vehicles in Australia each year, while rival Toyota Motor Corp. and General Motors Holden were manufactured more than 90,000 annually.
"Economies of scale Ford business in Australia, there is no" Emerson told reporters.
 
 



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