Ford closes Geelong engine plant - 600 jobs gone by 2010

[Falcon Freak]

Click here

I hope the media is wrong.

FF

[BLDNUT01]

hmm very interesting but they still have all the press lines there for the panels that broadmeadows dont do

[ltd]

They haven't made any announcement yet, it's probably more mud-raking from the opposition desperate to discredit workchoices in the run up to the election.

[brodfloyd]

i smell a rat. something is just not right about all this hype.

why would ford announce the closure of a plant and the end of an era 6 months b4 they release a new model??? It would kill all positive media coverage about the release of orion not to mention the hyperboli and rubbish that political parties and unions will go on with.

that said, ford have done stupid stuff like this before.

For all the good stuff thats said about this Duratec35 engine, its only the highspec or hypothetical versions that are a match or better than our current engine, and they cant be that cheap. And the rubbish about euro4 isnt worthy of a response.

[The Stylist]

Is this going to be the big announcement? If it is, then it's going to be some very dissapointing news. However, I just have a feeling that this is some media speculation based on a politicians assumption.

[Dazza XLT]

Pollies have been wrong before. So far Ford have denied that they've made a decision on the future of the plant, so maybe it's all BS. Who knows.

Time will tell....

Cheers

Darran

[AU1XLS]

Hmmm interesting/strange that they would be spending so much on fuel storage & engine test cells if they intended to close the engine plant down. Maybe its for calibration of the the new engines they intend to use.But thats the auto manufacturing business for you hot one minute cold the next.

[4.9 EF Futura]

Originally Posted by Darran

Pollies have been wrong before. So far Ford have denied that they've made a decision on the future of the plant, so maybe it's all BS. Who knows.

Time will tell....

Cheers

Darran

Agreed.

If it turns out to be a false claim, that's a pretty reckless/irresponsible/pathetic/inappropriate/lame/unfair thing for Kim Carr to be saying... im sure the people that work there arent 100% confident in the future of their industry as it is.

If it is true, why would Carr come out and throw all of this uncertainty into the community before the company made an announcement?

Fingers crossed its all nonesense.

[T3ts50]

Originally Posted by brodfloyd

And the rubbish about euro4 isnt worthy of a response.

From what ive heard Orion is supposed to be euro4 compliant.

[Bud Bud]

Actually I read this piece of info yesterday as well. It appears that the Geelong Council is also bracing itself so there might be some substance to this claim.

At least the good news is that they will be filling 200 - 300 new positions when they open their new R and D centre in Geelong, so at least Ford is not making plans to totally leave Geelong long term.

Killing off the engine line in Geelong smacks of decisions made over seas!

Vic: Ford cutbacks would impact on Geelong economy

16/07/2007 - A decision by Ford to axe hundreds of jobs at its Geelong engine plant would have a significant impact on the economy of the region, the Victorian city's mayor says.

The car giant is considering ending the local manufacture of V6 engines at the Geelong plant to source them from overseas in a declining market for Australia's traditional family cars.

Ford said on Friday no decision had yet been made but the company was looking at changes across its business as the popularity of large cars dipped.

Geelong mayor Bruce Harwood said he recognised that a company like Ford needed to operate in a "highly competitive global environment," but it also had long term plans for the city which would mean more jobs.

"Like all large, complex global businesses Ford continually reviews its various business units, this is a common practice and doesn't necessarily result in a change of operations," Harwood said on Friday.

He said Ford had promised to keep the council informed of any decisions that could affect local jobs but it had heard nothing to suggest job cuts were part of current plans.

"Of course we would be hopeful that when Ford makes decisions about its future direction it considers the strong historical connection and commitment it has shared with Geelong spanning over 80 years," he said.

"Not only is Ford a large part of the regional economy it is also a key part of Geelong's social fabric."

Harwood said Ford had invested heavily in the local economy since opening its first Australian plant there in 1925.

He said the company had long term plans for its operations in Geelong.

"Ford continues to invest in very significant research and development initiatives in Geelong to keep itself at the forefront of product development and innovation," he said.

"Ford is opening a new research and design centre in Geelong later this year which will deliver between 200 and 300 new jobs.

"In general the local economy is very buoyant and is increasingly diverse with new sectors such as biotechnology, services and tourism playing a growing role."

Ford, which has another plant at Broadmeadows, in Melbourne's north, said no decision had yet been made on whether to begin importing V6 engines.

But Ford spokeswoman Sinead McAlary told ABC Radio: We have informed our employees that we're looking at a range of alternatives across our entire business, to be blunt."

Source: AAP NewsWire

[flappist]

Children overboard?

[JPFS1]

I think it's cr@p....

Sure the IL6 may go in years to come, but the plant will stay and they'd probably assemble a global V6 (and variations) and also export to other AsiaPacific regions.

I would never trust the government or media.

[Raptor]

It might be Ford playing the political game.

It could be a good time to be asking our political masters in Canberra for some financial relief ...... or else all these jobs and local manufacturing go offshore....

So Labour or Liberal parties, what can you do for Ford Aus? :togo:

We have many worried worker and they all vote

[Bud Bud]

Originally Posted by JEM

I think it's cr@p....

Sure the IL6 may go in years to come, but the plant will stay and they'd probably assemble a global V6 (and variations) and also export to other AsiaPacific regions.

I would never trust the government or media.

Perhaps but we didn't think that they would of closed the Mitsubishi engine line at Lonsdale in S.A. as quick as they did either! I've been there on occasions and it is really a ghost town now!

[JPFS1]

Originally Posted by Bud Bud

Perhaps but we didn't think that they would of closed the Mitsubishi engine line at Lonsdale in S.A. as quick as they did either! I've been there on occasions and it is really a ghost town now!

Well i hope for the sake of all Ford AUS employees down at Geelong that i'm right to some degree.

[merlin]

For the uninitiated (who know nothing about Victoria) what locations and factories does Ford operate from down there?

[sgt_doofey]

Why would they close it? They still need to produce engines for the current lot of Falcon and Territories being produced don't they? Unless they have a replacement engine already?

[T3ts50]

Originally Posted by merlin

For the uninitiated (who know nothing about Victoria) what locations and factories does Ford operate from down there?

Geelong - Stamping and engine building
Broadie - Vehicle Production

I think

[JPFS1]

It's not only an engine plant, it's a stamping plant for other components, of which they use to stamp for other AUS car companies also.

[ED Classic]

Originally Posted by Raptor

It might be Ford playing the political game.

It could be a good time to be asking our political masters in Canberra for some financial relief ...... or else all these jobs and local manufacturing go offshore....

So Labour or Liberal parties, what can you do for Ford Aus? :togo:

We have many worried worker and they all vote

I agree...With the multi billions surplasses over the last 10 years, It is a great time to be asking espicially with the election.

[Mark351]

Also...

Geelong - Product Development, Proving Ground (Lara), Tool Shop (do contract work for others as well as tooling for Ford product), Discovery Centre (supported by, not owned by Ford)

Broadmeadows - Head Office, location of many component suppliers such as Venture.

[bob^]

Geelong makes the panels, and has some sub assembly of the panels before they are shipped off to Broadmeadows to get a full assembly done. Some sub assembly is done in Broadmeadows also.
There is an aluminium casting facility located in the Stamping plant, as well as a separate iron casting plant just down the road.

[Fordman1]

Originally Posted by merlin

For the uninitiated (who know nothing about Victoria) what locations and factories does Ford operate from down there?

Ok here is a summary from what I can gather from old brochures & the web:

Powertrain Operations in Geelong:

Engine Assembly and Machining plant.
Iron Casting Plant.
Aluminium Casting Operations

Stamping Operations in Geelong:

Press Operations (sheetmetal forming).
Sub Assembly Opertations (spot welding of sheetmetal into sub-assemblies).
Tool Making Operations.

Product Engineering:

New centre being built on main Geelong site.
You Yangs proving ground.
Broadmeadows Research Centre.

Assembly Operations:

Broadmeadows Assembly plant (body build, paint shop, final assembly)
Broadmeadows Sub Assembly plant.

Ford of Australia Head Office Broadmeadows.

FPV Campbellfield.

Lead taken by Prodrive.

[aussiblue]

see http://e19.email.excite.com/viewer.p...1338327a56fac2

AS THE Federal Labor Opposition yesterday
warned of a possible closure announcement of
Ford’s Geelong engine plant as early as today
(July 18), further details have emerged in the US
of the all-new V6 – including a twin-turbocharged
direct-injection version – that should eventually
slot into the next-generation Falcon.

[marcosambrose]

FORD Australia will announce the closure of its 82-year-old engine-making plant today.

www.theaustralian.com.au

Creating a new political headache for the Howard Government over the car industry's future just months from the federal election.

The decision by Ford to stop manufacturing six-cylinder Falcon engines at its Geelong factory in Victoria by 2010 and shift to imports will cost 600 jobs.

The Australian understands a further 600 jobs could be at stake at the company's Victorian Broadmeadows plant as Ford seeks to contract out part of its assembly and fleet maintenance work as well.

Ford's move, after many millions of dollars of Howard government grants, raises questions about the long-term economic future for Australia's car industry, with consumers shifting to smaller, imported cars in the face of rising petrol prices.

The company, however, is expected to argue today that its big impediment is the massive start-up investment that would have been needed in Australia to produce thousands of low-emission engines for the next-generation Fords.

Labor last night accused the Howard Government of failing to respond to market changes by developing new local technology.

Opposition industry spokesman Kim Carr said urgent measures were needed such as manufacturing four-cylinder engines and fuel-efficient transmissions. Senator Carr also called on the Government to send a delegation to Ford's US headquarters in Detroit to get an understanding of the firm's global restructuring plans, of which the Geelong closure is a part.

Brendan Sexton, 43, who has worked as a semi-skilled machine operator since he was 20, said the 600 Geelong workers were on tenterhooks.

"The Ford Motor Company needs to come clean," he said. "We want to know what our future is. We want to know if the Ford Motor Company is going to continue investing."

Mr Sexton said one job loss at Ford meant two others lost outside the company in the Geelong area. Many workers also had young families to feed and mortgages to pay. "In some cases it will affect both wage earners in the family," he said.

Industry Ministry Ian Macfarlane said he accepted the seriousness of Ford's decision and pledged help for those displaced.

But Mr Macfarlane insisted the Government had offered huge support to the car industry with its $7.3 billion assistance plan over 15 years. He said Ford had benefited from an extra $28million to improve fuel efficiency in 2005, and a special $52 million grant last year to develop the next generation Falcon and a pick-up truck for export.

Accusing Senator Carr of failing to understand the car industry, Mr Macfarlane said Ford's decision was related solely to the cost involved in producing big numbers of the new V6 engine. He told The Australian: "They need to be able to produce hundreds of thousands to be efficient."

So far the Government has resisted industry pressure to water down its planned tariff cut from 10 per cent to 5 per cent in 2010. Mr Macfarlane said any decision on reversing the tariff cut was "premature" but would be considered next year as part of a planned review.

Ford spokeswoman Sinead McAlary confirmed a decision on Geelong's future was imminent, with employees and then the market to be officially told.

Ford's move is likely to prompt a market rethink by competitors General Motors, Toyota and Mitsubishi, although industry figures are heartened by GM's commitment to new investment at its Fisherman's Bend plant.

The Australian Manufacturing Workers Union last night vowed to fight to save as many jobs as possible at Ford, and lobby for developing new products for the changing car market.

Vehicle division union chief Ian Jones said the Geelong engine-making closure would leave behind 600 workers at its stamping and iron foundry areas, and keep alive parts of the research arm.

Victorian Premier Steve Bracks said he had been assured Ford had a long-term future in Victoria and the Government would continue to assist the company to keep all its local plants open.

"We would like to see every person that's currently employed at Ford employed in the future, and as important is the long-term security of Ford," he said.

Mr Bracks said he accepted the assurances of Ford Australia president Tom Gorman that the company had a long-term future in Australia, in Geelong and Broadmeadows.

Tim Piper, Victorian director of the Australian Industry Group, said it was important to the state's economy that Ford maintain its operations in Victoria.

Former mechanic Jim Mock spent 16 years running a successful Ford dealership in Mildura, in northwest Victoria, before opening up his own workshop, which specialises in developing new parts for late-model Ford Falcons. "The Ford product has always been so good, much better than anything else in Australia and as good as anything else in the world. But the company itself is run by the sales and marketing people instead of being driven by the ideas of the researchers and developers and the engineers," Mr Mock said.

Additional reporting: Michael Davis, James Madden, Rick Wallace

So there it is, the speculation of changing from the formidable I6 to the V6 and possible TTV6 is going to happen.

Lets just hope that Ford carry out the plans to build a third car in Australia to save some local workers from retrenchment.

[Tles]

Ouch! :togo:

[AUIII XR8 MAN]

Well that a shame for the workers. But as the goverment keeps making it cheap for all sort of thing to be imported our jobs are going to go over sea.

[Ghiadude]

hopefully orion sales lift further than expected and these guys hold on to their jobs. Its a shame cos these guys have built the heart of falcon(some of them for decades).

FOR THE TIMES THEY ARE A CHANGIN!

[Rob]

Damn, I was hoping all the closure rumours were just that... rumours.

Sounds like a V6 is confirmed then for 2010. I hope we dont end up with some American peice of crap - FWD V6 pussbox.

[merlin]

Originally Posted by marcosambrose

Ford's move, after many millions of dollars of Howard government grants, raises questions about the long-term economic future for Australia's car industry, with consumers shifting to smaller, imported cars in the face of rising petrol prices.

Yes that makes perfect sense, /sarcasm.

Lets stop building "big fuel guzzling" engines here and import equally big ones from America. Howbout you could build smaller engines for an Aussie built smaller car and actually provide the current market with what it wants?

(Yes this is not what we want but to keep em alive...)