Car manufacturer Ford announced today it will stop making vehicles in Australia in 2016 and axe 1,200 jobs, having produced its first car in the country in 1925.
Ford Australia chief executive Bob Graziano made the announcement as he revealed a loss of 141 million Australian dollars ($136 million) after tax in the last financial year, with losses of 600 million Australian dollars over the last five years.
“Unfortunately we will cease our manufacturing operations in October 2016. As a result, approximately 1,200 jobs will become redundant when those sites close,” he said.
Mr Graziano said the decision was the result of local manufacturing being “driven by increasingly challenging market conditions — including market fragmentation and the high cost of manufacturing”.
The jobs will go at Ford’s Broadmeadows and Geelong manufacturing plants in Victoria state, which will close.
“We know this announcement is very difficult, especially for our employees,” Mr Graziano said .
Chosen excerpts by Job Market Monitor
Pent-up demand for new vehicles, along with a rebounding economy and a surging stock market, is bringing car buyers out in droves. On Wednesday, Ford Motor said it will add an additional 200,000 units of annual capacity this year — almost the equivalent of opening another assembly plant in North America. The extra capacity at … Continue reading »