Ford Closure
- Thread starter Burnsy
- Start date
I feel for you mate. I was ex Ansett and all too sad memories have flooded back. Pace.
I dont get that they say its twice as expensive as production in europe, asia i understand with the low labor cost ands why can holden and toyota make it work?
I feel sorry for all the ford people and assciated industries.
I feel sorry for all the ford people and assciated industries.
Thoughts are with you Soaring i hope it all works out for you ,it`s just a bugger of a thing to happen to anyone.
I feel for you soaring, not nice to have the place shut up shop and so many people now looking for work.
@ Leesy, As for how Holden & Toyota make it work. They export, so when the $ is high they export less. When the $ down in Aus it goes up other markets then it cost more to produce so GM & Toyota ramp up and export, taking advantage of the lower Aus $. Ford runs a unique architecture that no other car in the ford network builds off, so they cannot / do not export.
Holden & Toyota build off a common architecture that the rest of the networks use so can build for other markets. So unfortunately ford only build for the declining large car market in Aus.
This is what i have read in recent days, and understand to be the case. I also work in manufacturing and anything like this makes me read alot, always a concern when a large manufacture pulls the plug, the ripple affect is massive. I am happy to be corrected as i am in no way connected to the car sector in Aus other than a few people that have worked in R&D over the years.
@ Leesy, As for how Holden & Toyota make it work. They export, so when the $ is high they export less. When the $ down in Aus it goes up other markets then it cost more to produce so GM & Toyota ramp up and export, taking advantage of the lower Aus $. Ford runs a unique architecture that no other car in the ford network builds off, so they cannot / do not export.
Holden & Toyota build off a common architecture that the rest of the networks use so can build for other markets. So unfortunately ford only build for the declining large car market in Aus.
This is what i have read in recent days, and understand to be the case. I also work in manufacturing and anything like this makes me read alot, always a concern when a large manufacture pulls the plug, the ripple affect is massive. I am happy to be corrected as i am in no way connected to the car sector in Aus other than a few people that have worked in R&D over the years.
Chin up mate, be positive. One door closes, another one opens (unless Jayco have done the locks).
A few of us have had the rug pulled from under us from time to time and survived and thrived.
You're right there Burnsy but it's not only the Ford worker but all the workers in the supplying companies that manufacture components for Ford. This will have one hell of a domino effect.
Your not wrong mate!
This pretty much sums it up.
Ford needed an export program years ago and for whatever reasons, didn't.
This is the end result.
Cheers guys. At this stage I'm not directly affected as I work in the APA region, launching cars into China, India, Thailand etc. but plenty of the guys what've worked with over the years are going to be doing tough.
As for why Holden and Toyota can make it work? Believe me they are hanging on by the skin of their teeth. I worked at Holden on VE, and jumpshipping back then, as Holden had run out of work. since then they have started building the Cruise, but they are luck to break even on them.
Once Ford stops production, it will provide a short term boost to Holden and Toyota, but as the supplier base starts crumble, they will both fall too.
For manufacturing in australia to work, we need volume (economies of scale) and automation to offset our high cost base. Unless the head office wants to share the global production of high volume models to higher cost counties like australia, we don't stand a chance.
Then there is the Government policies. This gets into politics, which I try to avoid on friendly forums like this, but if you compare government assistance to auto companies around the world, Australia has one of the lowest assistance rates per head of population, combined with our policy of Free Trade agreements, and lowering tariffs. Many ask why a private company should get tax payer funding, and that's a fair question, but companies the size of auto manufactures have such a huge trick ke down effechero community and economy, the a funding is well and truly paid back.
In Australia we have also seem to have lost the enthusiasm to buy Australian. Not sure why this is, but years ago this formed a large part of the purchase decision for most people.
At least our Jaycos are Aussie made!
As for why Holden and Toyota can make it work? Believe me they are hanging on by the skin of their teeth. I worked at Holden on VE, and jumpshipping back then, as Holden had run out of work. since then they have started building the Cruise, but they are luck to break even on them.
Once Ford stops production, it will provide a short term boost to Holden and Toyota, but as the supplier base starts crumble, they will both fall too.
For manufacturing in australia to work, we need volume (economies of scale) and automation to offset our high cost base. Unless the head office wants to share the global production of high volume models to higher cost counties like australia, we don't stand a chance.
Then there is the Government policies. This gets into politics, which I try to avoid on friendly forums like this, but if you compare government assistance to auto companies around the world, Australia has one of the lowest assistance rates per head of population, combined with our policy of Free Trade agreements, and lowering tariffs. Many ask why a private company should get tax payer funding, and that's a fair question, but companies the size of auto manufactures have such a huge trick ke down effechero community and economy, the a funding is well and truly paid back.
In Australia we have also seem to have lost the enthusiasm to buy Australian. Not sure why this is, but years ago this formed a large part of the purchase decision for most people.
At least our Jaycos are Aussie made!
That's a pretty good summary, Soaring. Someone on the radio the other day posed the question "name five significant Australian made purchases you have made in the last year or two?" Usual answer was "um...er...gee"
The mines have stuffed up Nsw, in particular Newcastle, due to a massive downturn mainly because of taxes applied by our government. Personally this is my worst year since starting in 95, something has to give for manufacturing in all industries and it needs to happen now! Australia is capable of building or producing anything, who cares if we're not competitive with overseas, we will probably never be, but the dollars stays here and keeps people employed.....easy to say I know.
After being in the game for 28 years, It really annoys me seeing so many industries in manufacturing closing its doors and its always due to overseas. I remember when Elma closed here in Newcastle years ago that made light globes and fluro tubes, I still have an Australian made light globe in my dunny at work.....see how long a Chinese made one lasts, my point being we manufacture quality! AJC, your right about the massive subsidies that goes to overseas manufacturers, but what goes around comes around, that's what needs to happen here.
After being in the game for 28 years, It really annoys me seeing so many industries in manufacturing closing its doors and its always due to overseas. I remember when Elma closed here in Newcastle years ago that made light globes and fluro tubes, I still have an Australian made light globe in my dunny at work.....see how long a Chinese made one lasts, my point being we manufacture quality! AJC, your right about the massive subsidies that goes to overseas manufacturers, but what goes around comes around, that's what needs to happen here.
its sad news! but I did get this in the mail today:
http://www.carsguide.com.au/news-an...=news&utm_medium=email&utm_campaign=editorial
http://www.carsguide.com.au/news-an...=news&utm_medium=email&utm_campaign=editorial