EXCLUSIVE: Ford is pulling out of Australia

[66 Hertz]

There are two threads running on this topic, any complaints if we merge them into one thread?

go for it

edited by cpu by inserting quote

[CPU]

The two threads on this topic have now been merged and the titles changed to match the original thread. 

[Ang1965]

They'll directly import from overseas the same way they do now with Mercedes, etc. and their/our choice will be governed by which car companies are manufacturing RHD.

Well if they are producing RHD Mustangs for Europe by 2015, I guess their is no reason we will not see them is Australia. In fact, i can't see any other cars on the US market than can fill the void of the FPV range.  The top range Taurus is a V6 with 365hp, which is 272kw equivilant to the current XR6T.

http://www.autocar.co.uk/car-news/new-cars/ford-mustang-promises-right-hand-drive-2015

[Mustangpaul]

I certainly don’t want to become a panic merchant but ……… This also makes me to ask another question for consideration by the brains trust here …..With regards to what Ford may do down the track.

Purely speculation I know !!

My understanding is they intend to just  start importing some of the models they produce for the USA market here after 2016 ----I wonder then , what effect if any , it will it may have on our classic car market here ?

For example : if the started importing the new Mustangs here and lets say they sold them for around $50 – 80K  depending on what’s under the hood would that have any impact on the classic market values ???? ……………just putting it out there for comment?

 

I believe we follow American prices to a great extent but our cars have to cost more for freight loading on cost. Our classic cars have a lot more credibility here because of our road laws. An Australian car is taken for granted to be safe when we see it on our roads. Americans on the other hand, judging by the condition of the car I purchased, need to start by determining if frame rails are actually made of steel or wood, amongst other things. many of our cars are Right Hand Drive and that adds another $15000.00 to the cost value of the car if you happen to require that conversion to be done. We also need to convert headlight and seat belts before we can drive our classics here.  There could possibly be a discount in freight cost as the volume of imports expands and that would mean the mechanism of supply and demand could cause a shift in price loading for the freight on classics imported later.  By 2016 the classics will be another few years older so my 67 , actually produced in 66 will be 50 years old in 2016, with that sort of vintage, I don't know how importing newer cars could impact. You have raised a very interesting topic.

Cheers

Paul.

[Macka]

Just one question....  Why does it cost four times the price to make a car here compared to Asia.

[GLENN 70]

Lets change the laws so we can drive brand new american cars LHD    one new mustang thank you .

[boss69hogg]

 

A sad day for all blue oval fans!!

Will we become Holden fans though? Staying 'loyal' to our Country?? Dunno.

[Macka]

The carbon tax will continue destroying things yet.......

[Pinto Pete]

Ahh the carbon tax another wonderful addition to our lives by the Labour gubbermint, my reverse cycle air con shit itself and needed regassing, the tradie who came to fix it told me that the gas itself had gone up 800% overnight courtesy of our marvellous new tax...   

[nicco]

Do you think we might be in a different situation if the government just bought $39M worth of Falcons instead of giving ford the cash? And instead of buying imported vehicles.

Perhaps they will delete the Mondeo at the same time and send its twin the Fusion in as part of an all new line up. The silver lining would be if we could start getting F150's and Mustangs at Yank prices.

[mustang_talk]

More jobs too go. A real shame. I am really concerned about employment options in Australia. Not everyone can be involved in design and testing. These jobs are crucial to our well being as a community. All the workers who will lose their jobs contribute to the economy, the community and their families. I see too many people who have held the same role for many years then have to face the challenges of re-skilling. Anyway, I could go on...All the best to the men and women as they try to make sense of this...

[66 Stang]

Puts some perspective why the V8 Supercars were in Texas, without any USA manufactures supporting, looks like it will kill the V8 supercar event, who wants to watch a grid full of Holdens.

[66 Stang]

Just one question....  Why does it cost four times the price to make a car here compared to Asia.

Australia has one of the highest labour rates in the world. This is reflected and costed into every part / consumable that goes into the product.

In Fords case, 1200 workers @ $60,000 a year, is $72 million in wages alone, then add to that parts suppliers, overheads etc, just to costly to compete with asia's $6 per hour.

Fact is, Paul Keeting killed the industry when they lifted tarrifs on imported cars, and removed the protection afforded to our economy.

we run the risk of creating a 2 class society, and will soon look like India, wealthy and extreme poor

[shaunp]

Australia has one of the highest labour rates in the world. This is reflected and costed into every part / consumable that goes into the product.

In Fords case, 1200 workers @ $60,000 a year, is $72 million in wages alone, then add to that parts suppliers, overheads etc, just to costly to compete with asia's $6 per hour.

Fact is, Paul Keeting killed the industry when they lifted tarrifs on imported cars, and removed the protection afforded to our economy.

we run the risk of creating a 2 class society, and will soon look like India, wealthy and extreme poor

Why do you think Classic speed are based in Asia, so they can make more money.

[peter9231]

Well,
 No surprise really everybody knew it was coming.
 The government needs to wake up and smell the roses.
 If you want the industry to survive it needs tariff protection not cash injection.
 Ford Australia is only a Puppet on Ford Americas strings. (Ford America couldn't give a toss about Australia)
 Look at the product line up, The corporate front style on every model so they look the same.
 No model has its own style or soul anymore.
 It's back to Henry Ford's day... " you can have any model you desire as long as it looks the same"
 I did a plant tour of the Broadmeadows only a few weeks ago and the passion in the workforce was fantastic.
 I feel for the workers they must be crushed.
 Peter.

[R_Beckhaus]

Just one question....  Why does it cost four times the price to make a car here compared to Asia.

Having liver in SE Asia for a number of years, I'd say wages and cost of living differences would be a large part of the answer. While I was there, a mate had a Triumph TR3A restored professionally. One worker was paid to hand beat a new floor pan for it and his wage was 40cents per hour, and my wife and I lived comfortably on only $12,000 AUD per year. An Australian labourer back then would have been on around $6.00 AUD per hour. I will grant that was in the mid 80's but serves to highlight the differences I'm trying to describe even though times have moved on, similar differences still apply.
Cheers, Ron B

[StephenSLR]

My understanding is they intend to just  start importing some of the models they produce for the USA market here after 2016 ----I wonder then , what effect if any , will it have on our classic car market here ?

When Holden re-introduced the Monaro the prices of old Monaros went up.

The spokesman for Ford yesterday said the carbon tax is not to blame, there are many other factors.

As for Classic Speed, yes they are based in Asia to capitalise on the cheap labour rate, you can't say it's just to make more money, every business is out to make money.

By basing themselves in Asia they can deliver us a cheaper product thus they can sell more cars if more people can afford them. If they sell more cars, yes they will make more money.

Typically most companies in the same industry have a similar percentage range for profit margin and it will depend on the competition. CS aren't a monopoly, you don't have to buy from them if you want a Mustang, they have to compete with imports and Mustangs here in Aus. and their cars are still very expensive.  If they were based here, their cars would be more expensive, they'd sell less cars and probably go bankrupt as a result. The quality of their cars and customer service are another matter.

s

[68Coupe]

Australia has one of the highest labour rates in the world. This is reflected and costed into every part / consumable that goes into the product.

In Fords case, 1200 workers @ $60,000 a year, is $72 million in wages alone, then add to that parts suppliers, overheads etc, just to costly to compete with asia's $6 per hour.

The workers were earning between $90,000 and $100,000. High wages, soft working conditions, benefits - the unions certainly played a part in Ford pulling out of Australia.

[Macka]

I agree...  its amazing that something that Henry Ford developed and made history with paying his workers more and developing union groups, working less hours has now been the downfall of manufacturing Australian made Fords.

[GLENN 70]

Take the FG falcon ,i looked at buying a turbo ,asked around a few guys i know with them ,they all said they fly and thats where it ends . One guy on here with an fg xr8 , his work car ,2nd 6 speed auto ,3rd diff ,2nd tail shaft ,air con problems etc,etc  before it hit 100,000 klms. Sorry but they are built cheap and nasty right from the cheapest to there dearest . I want to buy australian but really would you . I remember being in the usa late 80s,  jap cars everywhere not american because jap were better .Then the president of the usa got on tv and asked people to buy american cars, and the car makers to build them as good as the imports  and they did .Next couple of years american cars every where ,now they are lacking behind again .

[Joe 70]

A sad day for all blue oval fans!!

Will we become Holden fans though? Staying 'loyal' to our Country?? Dunno.

Yes, sad times indeed!

I was hoping that I wouldn't see this in my lifetime, but looks as tho I will. Having 2 generations of cousins in Geelong who all did their apprenticeships and worked at the plant until retirement, I think it's a tragedy that things have come to this and the politicians and unions should all hang their heads in shame. Let's not forget all the ancillary component/parts manufacturers that will be effected...I think 1200 is only the tip of the iceberg in terms of job losses.

In any event, I don't think I will ever become a Holden fan no matter what happens. I've owned a few over the years, and I do like some of the old models, but I've always been a Ford fan since I can remember sitting in the front seat my old man's shiny new XM Falcon as a kid, and watching those V8 beasts eating up Bathurst in the 60's and 70's.

We shouldn't kid ourselves tho, it's only a matter of time before the same thing happens here in Adelaide. When all the Govt subsidies run out, they'll pack it in as well.






 

[GLENN 70]

Australia build better cars and australians will buy them ,and keep the bigger cars rear wheel drive . Put a higher tax on all imports .

[peter9231]

Quality is a subjective issue,
We have over 300 vehicles in our fleet.
Ford ,Holden ,Toyota , Nissan and Subaru.
The biggest numbers are Falcon and Commodore.
With fleet management you know every drop of fuel and oil used as well as repairs.
There is very little in repairs (including warranty repairs) between them all.
I am on my third Falcon now (Ecoboost sedan) the paint and panel fit and finish is perfect.
It has had no warranty issues so far.
This is without doubt the best company car I have had to date.
The only warranty claim I have en counted with a previous vehicle was a broken seat frame.
Quality can not be broad based on a couple of vehicles here and there.
Don't expect a 30K vehicle to have the same quality as a 100K vehicle.
Ford's problem is the wrong vehicle in the market place.
The large car segment has been and will continue in a steady decline.
You could market and manufacture the best deep freezer in the world but you won't sell it in Iceland. (It would not be relative to the market there)
The large car is no longer the staple product for Australia.
You won't see another Commodore after the VF made is Australia either.
The mistake Ford made was aborting the plan to manufacture small cars in Australia.
Peter.

[StephenSLR]

Don't expect a 30K vehicle to have the same quality as a 100K vehicle.

Unless that 100k vehicle is from overseas and the cost largely made up of tarriffs, importation, etc.

s

[shaunp]

Ford's problem is the wrong vehicle in the market place.
The large car segment has been and will continue in a steady decline.
You could market and manufacture the best deep freezer in the world but you won't sell it in Iceland. (It would not be relative to the market there)
The large car is no longer the staple product for Australia.
You won't see another Commodore after the VF made is Australia either.
The mistake Ford made was aborting the plan to manufacture small cars in Australia.
Peter.

That's correct, same reason why they stopped building wagons, the large car market has gone from sedan based cars to the SUV/4x4 market, in real terms.  Once you had a holden or ford as a family car now you have Prado, Kluger, Prajero Rav 4 etc. Back in the 70's 4x4s were pigs to own and drive, FJ crusiers, Landrover Series 3,  Patrols, you had to be a die hard to want one. Now they drive well, most like a car & not a truck.