Australia – Ford slashes 15 percent of workforce: 440 jobs gone

Ford Motor Co’s (F.N) Australian unit announced plans on Tuesday to cut up to 440 jobs, or about 15 percent of its workforce, and slash production by almost 30 percent to cope with a slide in popularity of its top model, the Falcon.

Australian car manufacturers have enjoyed solid sales over the past year despite a subdued economy, although Ford’s sales have lagged, according to industry figures.

The Ford Falcon was once Australia’s top-selling vehicle but now barely makes it into the top-20, hurt by a trend away from large-engine sedans in favor of small cars and sport utility vehicles, including Ford’s locally made 4WD Territory.

Ford said it would cut production from 209 vehicles per day to 148 vehicles per day from November 2012 in a response to changing customer preferences, which have driven an industry-wide decline in the sale of large vehicles.

“Implementing this structural change is essential to ensure the longer-term health of the business,” Ford Australia President Bob Graziano said in a statement.

He said most of the up to 440 job losses would be from the manufacturing operations in Melbourne and nearby Geelong in Victoria state. Last year, Ford cut 240 local jobs…

via Ford to slash 15 percent of workforce in Australia | Reuters.