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The writing was on the wall many moons ago in regards to Ford. The implementation of the Button Plan, continued failure of Federal Governments to support the local car manufacturing industry, and competition from overseas manufacturers was always going to kill it off.

On another note, as a Geelong resident I reckon the closure of the plant here is going to impact the local community in a big way. Only 500 jobs at the plant itself will be lost, however the trickle down rate for job losses in the local region could potentially be 6-7 times that, meaning thousands of Geelong residents could lose their jobs due to the subsequent blow it will deliver to the local economy.
 
HappyChappy35 said:
The writing was on the wall many moons ago in regards to Ford. The implementation of the Button Plan, continued failure of Federal Governments to support the local car manufacturing industry, and competition from overseas manufacturers was always going to kill it off.
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How have the government failed to support the industry?
 
Sad, but it was always going to happen. All the government money was never going to save it - Australians just don't buy Australian made cars anymore and the cost might have a lot to do with it
 

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Refusal to tariff Asian car imports is a blatant abandonment of the local car industry.

Giving token hand outs means nothing even if it does amount to a billion+ over a decade.

Many countries around the world support their local jobs by hiking imports. Aussies just hate paying more even if it costs all their brothers and sisters their job.
 
Messenger said:
How have the government failed to support the industry?
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For a start their unwillingness to tax Asian car imports, failure to regulate competition from overseas manufacturers, and implementation of the Button Plan. Government handouts were always going to be a band-aid fix and were never going to ensure the long-term viability of the local car industry.
 
Tariffs are like a mirage making people think everything will be ok if we just slap on a fee for imported goods (in this case vehicles).

Ok for starters how much do we make the tariff? On which vehicles do we impose the tariffs? Include BMW's Merc's? Once its implemented with the rise in wages etc when (not if) things get worse for our competitiveness do they increase the tariff? Where does it end?

What is so special about our car industry that it needs to constantly propped up?
 
Ford is a different case but I'd really like to see the brand Holden bought by a small private consortium rather than just left to die by GM.

I think it would be really cool if Holden was a small time producer (similar to how HSV is now, but producing from scratch) for the local market. It probably wouldn't be profitable, but the notion is cool - even if they just made 10,000 utes & SS sedans a year or something.
 
HappyChappy35 said:
For a start their unwillingness to tax Asian car imports, failure to regulate competition from overseas manufacturers, and implementation of the Button Plan. Government handouts were always going to be a band-aid fix and were never going to ensure the long-term viability of the local car industry.
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Frankly Ford have produced much better cars in recent years since the tariff barriers came down. When tariffs were 35% they produced the shithouse EA Falcon. May as well buy a Lada Niva. If tariffs are required for viability, there's a problem.
 
No surprise really, failed completely to adapt to the changing market, got outdone in a lot of ways by competitors. Take away fleet sales and taxis from the ones you see on the road and there'd barely be a single one left...

As for taxing Asian cars... Just why, the issue isn't the cost the issue is the fact the falcon is a shitty relic that doesn't meet the market demands anymore, at least not like it used to.
 
Juggalo Balla said:
Refusal to tariff Asian car imports is a blatant abandonment of the local car industry.

Giving token hand outs means nothing even if it does amount to a billion+ over a decade.

Many countries around the world support their local jobs by hiking imports. Aussies just hate paying more even if it costs all their brothers and sisters their job.
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Spot on. And retail, which employs millions of Australians, could go the same way.

Globalisation is inevitable but it's not going to be kind to many Australians and our beloved way of life.
 

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Any details on some of the last cars that will be in production here in AUS?

Imagine they'd start cutting back now and keep a few in production until the date. Falcon I'd think would keep going, but have no real idea.
 
Colin D'Cops said:
Imagine they'd start cutting back now and keep a few in production until the date. Falcon I'd think would keep going, but have no real idea.
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Considering the Falcon was planned for axing anyway who knows, don't they only make 2 cars in Australia anyway? Both of which come off the one production line.. So really if they axe anything before 2016 there would be nothing left to make anyway.

The falcon badge will probably continue to exist, just it will be a re-badged Taurus or Mondeo.
 
Have NFI of the car industry here, or abroad, zimma haha. Thanks for the response. :thumbsu:
 
Scotland said:
No one in their right mind would buy a Mondeo/Taurus with a Falcon badge stuck on it.

Besides, the Falcon badge will be retired in 2016 according to the Ford CEO.
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Nobody in their right mind buys a falcon now, so not much different. Mondeo's seem to have replaced a few companies fleet cars, as have Holden Cruzes. Really though they aren't about to release the Taurus as a Taurus here when the only model we got was that hideous thing in the 90s.

Sad because they're actually a really well made car.
 
Messenger said:
Frankly Ford have produced much better cars in recent years since the tariff barriers came down. When tariffs were 35% they produced the shithouse EA Falcon. May as well buy a Lada Niva. If tariffs are required for viability, there's a problem.
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Reducing the tariffs did have an impact on improving quality - it needed to happen. When the Button plan was introduced, it was so that Aus could compete with places like Europe on quality. It probably did not foresee the surge in output from Asia - reducing tariffs helps improve quality but it doesn't help with competing with low-cost centres.

It has been well documented that all countries with auto manufacturing receive varying degrees of government support. Such a large, long-term industry needs it as private investment more and more seeks more immediate returns. Germany, Thailand and China car industries (just to cite a few examples) recieve more taxpayer invesdtment than Australia does. I think Australia needed (or needs) to decide one way or another if they want this industry or not, and plan a vision accordingly.

I think the government in Australia may have failed in having a strategic vision for this business. Whilst there has been some investment in research facilities, the overall feeling has been one of providing just enough money to keep the jobs going for the duration of the next election cycle.
 

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Gasbope said:
Wonder how long till the same happens to Holden?
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All depends on their returns on exports. Currently this is lower than expected but there is scope to improve this.

As for the Cruze, it may be a step in the right direction regarding making a car in a segment that is growing - but that segment is really competetive. Holden currently lose money on the Cruze.
 
Toyota export 60% of cars made here. How is Ford doing?
 
Ford export very little - a few Territories to Thailand (which are a ridiculously high price over there) falcons to NZ.

I've read that each Camry Toyota exports is at a $3500 loss, but I don't know how true that is or if its creative accounting.

With the amount of plants being built overseas I'm not sure high volume - low margin export is the way to go, perhaps choosing a higher priced 'niche' vehicle line would be profitable, not sure.
 
kickazz said:
Ford export very little - a few Territories to Thailand (which are a ridiculously high price over there) falcons to NZ.

I've read that each Camry Toyota exports is at a $3500 loss, but I don't know how true that is or if its creative accounting.

With the amount of plants being built overseas I'm not sure high volume - low margin export is the way to go, perhaps choosing a higher priced 'niche' vehicle line would be profitable, not sure.
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If Ford are relying on a domestic market with limited exports, their demise in Australia cannot be surprising.
 
The Territory would have seemed to be a winner domestically, they were a little late on the diesel revolution though.

That Aussie developed 4.0 six was/is a fantastic engine, just a little thirsty in this day and age, the 2.0 litre missed the point entirely, would have loved to have seen a Falcon with a 160kw ish diesel.
 
Falchoon said:
The Territory would have seemed to be a winner domestically, they were a little late on the diesel revolution though.

That Aussie developed 4.0 six was/is a fantastic engine, just a little thirsty in this day and age, the 2.0 litre missed the point entirely, would have loved to have seen a Falcon with a 160kw ish diesel.
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The Territory sold reasonably well, but again when your lineup is only 2 cars and to my knowledge neither are exported you're really playing a dangerous game. The biggest thing seems to be Holden undercut them with the Captiva which seems to be the new soccer mum mobile of choice.

The issue was they not only didn't dabble in diesel but they kept making cars too big and too thirsty for the current market, as you said, too thirsty in this day and age... Add in the unions constantly going for payrises during times when businesses are struggling and no shit they're going to shut up shop. Honestly I don't blame any company for leaving Australia, our wages are high, our OH+S laws are strict, our worker rights and unions are overzealous and our location and market is shithouse. Why would you put up with all that when you can move to Asia, save money in every way.
 

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