Ford Australia expected to cease local production from 2016

[Lima]

Breaking news about Ford Australia this morning which won't make for happy reading for blue oval fans:

AUSmotive.com » Ford Australia to close its doors? (http://ausm.tv/2hu)

[Dutch77]

A sad and bad day indeed, as this will just speed up the demise of what's left.. and I doubt our country has enough alternative projects to soak up this manufacturing base.

Oh well, I guess we can just keep digging stuff up and shipping it out.

[team_v]

A sad and bad day indeed, as this will just speed up the demise of what's left.. and I doubt our country has enough alternative projects to soak up this manufacturing base.

Oh well, I guess we can just keep digging stuff up and shipping it out.

We need to focus on researching and innovating new ways to do things.

Instead we just sit bak and throw money at failing industries (livestock grazing/manufacturing) in the hopes of propping them up becasue that is what this country was built on.

The money the government gave to Holden recently was the equivalent of paying each of their employees 90k per year and then they went ahead and laid off 500 staff and sales/production still dropped.

[Dutch77]

We need to focus on researching and innovating new ways to do things.

^ This is what I meant to be getting at - no point competing on low end manufacturing. Absolutely we should be focused on R&D and value-add industries where skilled labour is required and the cost of that can be recovered.


Instead we just sit bak and throw money at failing industries (livestock grazing/manufacturing) in the hopes of propping them up becasue that is what this country was built on.


I don't necessarily have an issue on the livestock front, Australia has an ability to be a player in food supply in the future, and food security will rank alongside oil one day as a war/conflict issue.

[Lima]

Confirmed.

AUSmotive.com » Ford Australia to stop local manufacturing in 2016 (http://ausm.tv/2hx)

Up to 1200 jobs lost when the Broadmeadows and Geelong factories close in October 2016.

[team_v]

I don't necessarily have an issue on the livestock front, Australia has an ability to be a player in food supply in the future, and food security will rank alongside oil one day as a war/conflict issue.

Our livestock grazing industry is extremely heavily subsidised.
Every time there is a flood or a drought we end up throwing money at farmers, plus they get subsidies for electricity and water supply.

Instead we should focus on the production of "non-animal meat products" either through plant protein processing or lab grown muscle tissue.
This can also be vertically processed so you have a 10 story building that provides a product using less inputs and less space than a conventional livestock farm.

This has been proven in a pilot project in Denmark but we just sit here and watch the rest of the world move on while we stick to our old ways because that is how it's always been.

[Twin_Dad]

I'm sensing a philisophical debate brewing here, to GM or not to GM. I think I'll just step away slowly......

[Dutch77]

I'm sensing a philisophical debate brewing here, to GM or not to GM. I think I'll just step away slowly......

Don't think I'll be buying into that either - I guess all I wanted to say was I accept subsidies to a certain point in primary production due to it's critical nature (and the fact the whole world does it). It's less relevant in unskilled manufacturing where we haven't got a hope to compete with our northern neighbours.

[Wolfgang]

As sad as it is that a lot of people are going to lose their jobs, not only at Ford but the third party suppliers, they didn't exactly move with the times here in Australia. Ford have done some great project for overseas markets but hung onto the Falcon for too long.

Doesn't help they can't market themselves out of a paper bag. I cringe every time I see one of their new adds, doesn't make me want to buy their product.

[Njay]

I looked after the ford ceo and managers meeting on Sunday, I wasn't allowed in the room and they blocked all the windows

I assumed new model launch, how wrong was I

Sent from my GT-I9505 using Tapatalk 2

[Diesel_vert]

Digging up minerals and selling them to China is well and good for the moment, but I do wonder if Australia will have any manufacturing or heavy industry left in the future. Or will we eventually be forced to import everything because we can't make anything?

All I hear is talk, but I see no reform.

[QBDentFree]

Our livestock grazing industry is extremely heavily subsidised.
Every time there is a flood or a drought we end up throwing money at farmers, plus they get subsidies for electricity and water supply.

Instead we should focus on the production of "non-animal meat products" either through plant protein processing or lab grown muscle tissue.
This can also be vertically processed so you have a 10 story building that provides a product using less inputs and less space than a conventional livestock farm.

This has been proven in a pilot project in Denmark but we just sit here and watch the rest of the world move on while we stick to our old ways because that is how it's always been.

Because we have so little land to spare in Australia?

I was raised on a farm (sheep and cereal crops) in Western Victoria. Should we be raising 10 storey buildings out there instead, or just abandon the whole continent outside the major cities?

[team_v]

Because we have so little land to spare in Australia?

I was raised on a farm (sheep and cereal crops) in Western Victoria. Should we be raising 10 storey buildings out there instead, or just abandon the whole continent outside the major cities?

As i said before, Australia is stuck in a backwards "this is how we've always done it" mentality when it comes to many industries, especially farming and vehicle manufacturing.

Why should Joe Public have to subsidise an industry that is not sustainable just becasue its been around for a while and hasn't been bothered to move with the times to be relevant/self sufficient?

The problem for Ford Australia is that we have the highest base salary of any OECD country so to manufacture anything here costs easily 4 or more times as much as their parent company operations in Asia, America or Europe.
It was inevitable that this would happen an they were stuck in the old times saying people wanted big family cars when people were realising a mazda 3/golf will fit their 2 kids just as well and save on fuel/insurance/rego.
Then there is the money they poured into the v8 supercars series which was a massive waste.


Re: Livestock grazing, i am happy for people to do it here but not if they are going to complain they live on a farm in the middle of nowhere and expect my taxes to pay for electricity and water infrastructure for them, flood/drought assistance and recently the allowance into national parks in QLD.
Sure mining companies operate out there but they actually pay upfront for the infrastructure to be delivered and don't get the subsidies that farmers do.
They need to be self sufficient and innovative to move with the times and if not then we shouldn't be supporting them as it is just throwing money into a bottomless pit.

Vetical farming is taking off overseas and is the way of the future, it allows for less water/space/energy usage.
While we do have a lot of land here, about 60% of it is too dry to do anything with so if people want to farm it they can, just so long as they don't complain when they have to fund their own infrastructure.


What this comes down to is the Government failing to push research in areas where we can be competitive, instead of throwing money at industries who complained they weren't pro-active and are now on a slippery slope towards their inevitable end.

[Dizzydumb]

As i said before, Australia is stuck in a backwards "this is how we've always done it" mentality when it comes to many industries, especially farming and vehicle manufacturing.

Why should Joe Public have to subsidise an industry that is not sustainable just becasue its been around for a while and hasn't been bothered to move with the times to be relevant/self sufficient?

That's spot on mate. Sadly they hung onto the Falcon for too long. Perhaps they should've focused on building engines or other technical parts instead of wasting time & money on non-viable 'whole' products. R&D itself would've cost a bomb already.

Are people so stubborn to accept that commodores and falcons have lost their reign to the smaller 4-cyl european/japanese/korean cars? Keeping the industry alive is one thing, but doing it at the unwilling public's expense, I don't think so. Such is the mentality of our country, that a lot of people tend to rely on handouts when things are not doing so well and whinge when they don't receive any, so that's why Australia will struggle so badly to even be competitive. People refuse to help themselves instead! 'Reform & restructure' could've been a good start point, but sadly Ford has missed its window through blatant ignorance (and that backwards mentality too).

As much as we'd like to support our local products, anything 'Australian' these days cost an arm and leg. This is why more 'economically sensible' Aussies choose to own a Kia, Honda or Toyota instead. For the money they pay, they'll be getting so much out of a car.

Thanks to China buying our resources, we've been lucky to survive this far, but for how long? Everything has a lifespan, and if we can't be self-sustainable, we're utterly screwed.

[noone]

Agree with the moving forward sentiments.

Its not nice to loose 1200 jobs, but with the Govt spending (thus our tax dollars) keeping the products affordable, minimal changes to both Holden and Ford sedans over the years, is it really suprising?

I work in a company of 12, I worked over 30 hours over the last 2 days (for no extra pay), we get no special Govt. support, so why should a large employer? Its time that failiures were left to fail and small business and innovations / innovators are supported.

I feel for the workers, some of them are likely to move to find new work, its a horrible prospect. Good luck to them and my non-religious prayers.

[wai]

One of the problems with the local car industry is that they believe the government will always bail them out. They have the attitude of the banks where they also believe they are too big to fail.

We need a vehicle manufacturing industry, purely because of the spin off and multiplier effect it has. The problem is that money gets thrown at it without any conditions applied. We have Liberal governments who handed money over and never required any accounting for where it went. Similarly Labor governments have done the same thing.

If we think about it for a moment, us tax payers have handed over money in the billions of dollars over to an industry where little has changed. For that sort of investment, we should have a top class vehicle manufacturing industry. Instead, without any for of post implementation audit, we still have an ancient set of manufacturing facilities that produce vehicles that the public do not want to buy.

Where has all the money gone?

The apparent solution is to throw even more money at it, only this time it will go to the workers who have lost their livelihoods in the form of retraining. The problem is to do what? What other industry do we have that such workers would be able to be trained to work in?

Unfortunately, as the debacle in the car industry shows, governments are hopeless at picking winners, so whatever they pick is not likely to be the saviour. We have little or no manufacturing industry left.

Ford has said that they will keep a research and design presence here. The problem is that without a manufacturing facility here, they will be working with one arm tied behind their backs.

I have no issue with taxpayers helping such an industry, but only if there are tight controls on how and where that money is spent. At the moment our taxes go to support industries in other countries. Remember the "pink bats"? That was implemented to kick start a local energy saving industry by getting insulation manufacturers to increase their capacity so that they could export product. All it did was increase the capacity of Chinese insulation manufacturers.

Unfortunately we have people in government who simply do not know what they are doing. Of course they say they could get better jobs in the private sector. I would love to see that.

As usual, it is the workers who will feel the full force of this.

[QBDentFree]

As i said before, Australia is stuck in a backwards "this is how we've always done it" mentality when it comes to many industries, especially farming and vehicle manufacturing.

Why should Joe Public have to subsidise an industry that is not sustainable just becasue its been around for a while and hasn't been bothered to move with the times to be relevant/self sufficient?

The problem for Ford Australia is that we have the highest base salary of any OECD country so to manufacture anything here costs easily 4 or more times as much as their parent company operations in Asia, America or Europe.
It was inevitable that this would happen an they were stuck in the old times saying people wanted big family cars when people were realising a mazda 3/golf will fit their 2 kids just as well and save on fuel/insurance/rego.
Then there is the money they poured into the v8 supercars series which was a massive waste.


Re: Livestock grazing, i am happy for people to do it here but not if they are going to complain they live on a farm in the middle of nowhere and expect my taxes to pay for electricity and water infrastructure for them, flood/drought assistance and recently the allowance into national parks in QLD.
Sure mining companies operate out there but they actually pay upfront for the infrastructure to be delivered and don't get the subsidies that farmers do.
They need to be self sufficient and innovative to move with the times and if not then we shouldn't be supporting them as it is just throwing money into a bottomless pit.

Vetical farming is taking off overseas and is the way of the future, it allows for less water/space/energy usage.
While we do have a lot of land here, about 60% of it is too dry to do anything with so if people want to farm it they can, just so long as they don't complain when they have to fund their own infrastructure.


What this comes down to is the Government failing to push research in areas where we can be competitive, instead of throwing money at industries who complained they weren't pro-active and are now on a slippery slope towards their inevitable end.

Sorry for getting stuck on this, but it's a bit of a sore spot for me.
I know plenty of farmers who are trying to be "proactive". Some have become certified organic, to accept a lower yield for higher grain prices using no chemicals etc, and some go the other direction and switch to GM crops for higher yields. This causes issues for their organic neighbours when a small GM contamination makes their whole crop worthless. (Different discussion again...)

Just keep in mind that if farmers go bust (and where I grew up too many families of many farming generations have called it quits this last decade), then the towns that support them go bust too. Like it or not, the ONLY reason for most country towns to exist, is that they are supporting the local farmers and their families. You are talking about shutting down the whole country outside of the major cities.
I'll try to leave this alone now...

[Greg Roles]

At least I had the experience of a nice new BA GT off the line, a childhood dream fulfilled.