Ford to close Aussie operations in 2016

[letsboogie351]

Its not just the Ford worker that will be put off but the flow on effect to the component businesses as well. Geelong is surely going to take a big hit if Alcoa close their smelter and Shell closes the refinery and lose the Ford plant too.

[PeterAllen]

People complain about subsidies to automakers, but they amount to bugger-all especially when you compare them to the tax concessions and rebates given to the mining industry!

Let's get the facts straight. Ford has been given $1.1 billion in total from Australian Governments since 2000 (Liberal and Labor) and in return invested over $3.3 billion. Then factor in business and sales taxes on components, wages and car sales and it's safe to say that Governments have got their money back.

Australia has the LEAST protected automotive industry out of all of the countries in the world that make automobiles yet we are also one of about 15 countries with an industry mature enough to produce a car from a clean sheet of paper to the final product.

A bit of economic history - the electon of the first Australian Govermnent (Fed) 1900, was fought out between Protectionist and Free-Traders.

Have a good night's sleep and watch the sun rise on a new day tomorrow.

[HSVREDSLED]

Originally Posted by Gav

Just like the Labour Party, it's voters are quite short sighted.

No offence meant, but it is spelt Labor Party not Labour Party. Its a common mistake.

Labour means 'work" Shop stewards come union officials come Labor ministers only watched other people work so they cant be matched to anything that resembles...."work"

Like I said no offence meant.

[Gav]

Just shows how little I give a f##k about them

[boxhead]

Yes the knock on effect will hurt hard as well.
Companies like Pilkington Glass, Air International, Bosch etc etc have all just lost 1/3rd of there market.

[Chris L]

Im with you on this one Gav, has Canberra ever been more populated by tin eared dickheads with not one clue on business or any idea of what common sense may resemble ?. Snouts in the trough and self interest..........and the country is about to pay a huge cost for complete incompetence. Whilst they retire on their very generous pension/super scheme available to no one but themselves and all the perks that go with it. Makes me want to be sick.

Better stop before I get pissed off....

Cheers
Chris L

[Legless]

With a third of the market for the chain of supply gone there's going to be huge ramifications. Supply chain businesses and even Toyota and Holden wont have the benefits of economy of scale. As they say "the writings on the wall..." last one out turn out the light because we can't afford the friggin power bill either.

[sideshow]

Can they last till 2016
Would u buy a ford these days now u know they are closing
What bout parts etcetera
It's going to end much sooner

[PeterAllen]

Originally Posted by boxhead

Yes the knock on effect will hurt hard as well.
Companies like Pilkington Glass, Air International, Bosch etc etc have all just lost 1/3rd of there market.

Originally Posted by Legless

With a third of the market for the chain of supply gone there's going to be huge ramifications. Supply chain businesses and even Toyota and Holden wont have the benefits of economy of scale. As they say "the writings on the wall..." last one out turn out the light because we can't afford the friggin power bill either.

They haven't lost 1/3rd of their market, nothing like it - those suppliers have known for years the likelihood of this happening (as has any well informed citizen) and have diversified. Sensible suppliers have established good auto component markets in India and Asia generally, and even in the USA, and/or high-tech component supply contracts in medical and other fields.

Here are some more facts: Australia subsidises the auto industry to the tune of $18 per person of the population; in America it is $280 and in Sweden it is over $300.

[Rebel1]

Don't you guys get me started about our red headed PM.
Every week I look forward to a new cartoon from Larry Pickering.

His cartoons depicting the redhead are just pure talent.
Here is a sample: Cartoons - The Pickering Post

[dhs.buckley]

one word Tariffs! on all imported cars.
most other countries have them to protect the auto industry.
when all the ozzie cars are gone, what do you think will happen to the price of imports, they will go through the roof, and we wont have a choice.

[Gav]

I was discussing it with my wife last night, if any of the patriotic high flying billionaires where worth a pinch of goat poo, they would buy the plants and build a new Australian car.
It would probably be a bit more productive than lets say.... Building a replica of the titanic?

[dhs.buckley]

Less support, lower tariffs, no industry

Date May 24, 2013
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Clay Lucas

Workplace Editor for The Age

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According to a group of auto manufacturers who went to Industry Minister Greg Combet last November asking for extra support, Australian-made cars had shrunk by late 2011 to just 14 per cent of the market.

A submission by the Federation of Automotive Product Manufacturers to the minister said that of the more than 1 million cars bought in Australia in 2011, about 86 per cent were imported.

The report warned that without further state and federal subsidies, car companies like Ford could close. This would have huge knock-on effects to parts suppliers.

''The industry is at serious risk of failing without further, considered intervention, stimulus and support,'' the report said.

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It blamed the high Australian dollar and the poor economies of the countries that had traditionally imported Australian cars for the local industry's crisis.

About 80 per cent of cars imported into Australia come from Japan, Thailand, Korea or Germany, the report said. But many of these countries retained huge tariffs on imported Australian cars.

This was despite Australia reducing its tariff on imported vehicles to between 0 and 5 per cent. Thailand, for example, charged an Australian company wanting to export to the country a tariff up to 80 per cent.

The report also compared what other countries with car industries invested per capita via government subsidies. ''The Australian automotive industry received significant support from the Australian government,'' the report said. But this assistance was ''dwarfed in comparison to assistance provided to many other automotive sectors in other countries''.

Sweden was the biggest subsidiser of its car industry, giving manufacturers $US330 per citizen, the United States $US260, France $US150 and Canada $US100. By comparison, Australia gave car makers $US18 per person.

The report also said that the benefits of cheaper imported cars were not necessarily flowing to consumers as car companies chose instead to invest the savings in marketing their brands.

Also, customers buying overseas cars were more likely to get a discount because dealers had more flexibility to give a discount.

The report called on the government to re-apply a 10 per cent cent tariff on all imported vehicles, adding $2600 to the cost. The report said it would likely reduce demand for imported cars by 5 per cent, with the purchases going instead to Australian manufacturers.

[soulman]

Just like the Dinosaurs....

If we do not adapt we die.

I am an exporter doing it no harder than any other Aussie, if i am not competitive , i cannot expect others to foot the bill!

We blame every politician for our woes, and yet expect the best quality at the cheapest price regardless of were it is manufactured.

I manufacture a product that is 95% Australian made and sourced, and export it world wide, i do net get subsidies nor any assistance from our government and despite fluctuating demands for my product and increasing costs of manufacturing locally i can only keep it viable in Australia for a limited time.

There will be a time that i too will need to source a less expensive manufacturing option,

other wise what are my options ...close shop ?

At least if i stay an Australian company and turn a profit , i will only go out and spend my profits in Australia !

If our cars are not competitive , why subsidize them ?

We need to adapt to our needs wether its producing food or something else !

My 2 cents.

Soul.

[spookypt]

I remember when I was involved in writing and detailing specifications on Qld and Federal Government projects back in the early 90's where we had to satisfy and quantify what percentage of the products submitted on tenders where Oz made/resourced. As a part of the selection process this was factored in as a % as to who should be awarded the job.

In the end, the tendering process gave weight to Oz made. By about 1995 this was removed from the selection process due to the establishment of FTA with China and the USA amongst others.

In the 90's I had the option of sourcing products from Australian manufacturers (nationally) to satisfy these tenders. At a guess back then I had about 20+ factories to choose from.......Now from that list there are 3 remaining.

The market is flooded with Chinese products and although untested for formaldehyde content, its selling here in Oz to Government departments faster than it can be supplied.

I have also been involved with the writing and submitting to State and Federal Government Standing offer arrangements. Currently there is one hich has now been running for 3 years and is still yet to be properly implemented. Many government departments simply don't know how to use it... So they buy there stuff from China.

It's faulty towers on steroids. The biggest laugh is how Govt (both sides) purports to supporting Australian Manufacturing... They don't and haven't for 20 years plus! I don't mean subsidise, I mean support.

As far as Ford goes.. well... it started with the thin walled XD door frames that cracked at the hinges, the outsourced electronic auto boxes that failed and the woeful service to correct warranty issues which I'm sure has all played a part.

I say.....and I'll get flamed here..... increase the GST to 15% and lower the income tax thresholds. You pay tax on what you consume BUT you also save tax on your earnings and are not penalised for working harder.

Cant be a bad idea. NZ has done just that and is booming along with a very nice balance sheet indeed. They don't have compulsory super nor as higher earnings in general but they have turned the country around in 4 years. And the welfare cheaters who found it tuff just flew over here and took advantage of what we offer anyway.

Just my opinion but twas worth the rant.

Spookypt

[Rebel1]

Originally Posted by soulman

J
We need to adapt to our needs wether its producing food or something else !
My 2 cents. Soul.

I'm with you soulman.
We are sending our primary producers broke because we import fruit and vegies from overseas whilst our own farmers leave produce on the ground.
Fresh orange is no longer fresh ...It's made from imported dehydrated powder imported from OS.
We import seafood from overseas which has been raised in questionable conditions.

Our Government reports dodgy unemployment and under employment figures.
These real figures from Roy Morgan research :
However what should concern the Government is that a large 2.305 million Australians (18.2% of the workforce) were unemployed or under-employed in March and while this is down 1.6% (168,000 less than last month) it is up a large 226,000 (1.0%) over the past 12 months since March 2012.

The Fed Government has to realize that it is employed workers who pay taxes, consume products, including cars, and generally add to Government coffers.

We need more people "producing" something. Only when people earn a fair wage can they "consume" and contribute to the economy.

I'm going to get flamed for this but the only course left for the Oz. Federal Government (whatever color) is to introduce a Job Guarantee:
See here for explanation:
What is a Job Guarantee? | Bill Mitchell – billy blog

I'll put my flame suit on now!

[Chris L]

Increasing tariffs to help protect the Aussie Car Business is the obvious solution, it seems to be working for those that are doing it as they still have an industry. You can only bend so much before you break and Ford have broken, others will follow.

Not all PLAYING FIELDS ARE LEVEL and that is why tariffs exist globally. Choosing not to acknowledge basic economics and fundamental fact will send you into the ****ter. That is exactly what this blinded bunch of ****wits in Canberra do best, we are so clever we can ignore what works and fix things that are not broken whilst doing the exact opposite of what should be done.

I have recently sold my share of a manufacturing company in Campbellfield and we did once do work for Ford and many other local manufacturing companies in that area. The story is the same all over, gone to China or gone fullstop. To see it first hand was quite a humbling experience, but you can adapt to a certain degree to find opportunity to remain competitive. Everyone has a limit and unfortunately more are finding it.

When will this country have a leader that actually has the balls to do something, not hide behind bull**** rhetoric, say what they actually think and squash these bloody minority groups. Do what they know to be right and just, despite what the spin doctor states. You either are with the tide or against it, greater good for the greater number. A simple philosophy that Canberra just don't get.

Don't get me started on our Farms/Land and Stations going overseas !!!

Jeeezz, I knew I would get cranked up........apologies. My 2 cents....

Cheers
Chris L

[soulman]

It's also very concerning the amount of prime "food bowl" real estate is being sold off to off shore interests ......
So how long will it be before being a primary producers are no longer viable?

Soul.

[Gav]

It's deeper than that.
Large areas of land where bought up by 'super funds' and have since gone broke.
The administrators walked with their pockets lined and overseas groups bought the properties for less than the value of the water.
Don't get me going on the subject of unbundling water from properties... >

[sideshow]

sales went down for the falcon which was their biggest seller along time ago
the big bosses got more money and the other workers got shafted
this means designers and engineers got shafted or cheaper ones hired

this leads to poor vehicle construction which leads to low vehicle sales
I cant say it enough but the falcon for past 10 years has had more faults than
niki minag heheheheheh
I tell everyone not to buy one especially 2nd hand because they go for 3 or 4 grand
then u need to spend 2 grand fixing it