Ford posts $267 million after-tax loss

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Ford has joined Holden in reporting significant losses for 2013.

The manufacturer’s annual financial report shows after-tax losses of $267 million, driven largely by a $242 million write-down of its local manufacturing facilities.

Its 2013 operational losses were listed at $25 million, which came despite $72 million in government support.

Ford announced on May 2013 that it would stop building cars locally in 2016, a decision that was followed by the collapse of the Australian car industry as Holden and Toyota followed suit.

The brand will shed 1200 jobs by 2016 in a process expected to cost $200 to $250 million in redundancy provisions.

Its 2013 results follow losses of $290 million and $141 million in 2011 and 2012, but Ford has hope for the future.

Ford Australia president and chief executive, Bob Graziano, says more lucrative imported models now form 80 per cent of its sales.

“Our business is strengthening based on the retail customer response to our new products such as Ranger, Focus and Kuga,” Graziano says.

“Serving individual customers with world-class vehicles is driving the momentum of the transformation plan we announced a year ago.”

Ford says it will have the largest automotive workforce in Australia once Toyota and Holden stop building cars.

Its Melbourne-based facilities serve as an Asia-Pacific research and development cars for cars such as the China-only Ford Escort, giving Australia a significant role to pay in the creation of new cars.

The role also brings in significant cash for Ford Australia, which posted $312.9 million in engineering revenue that helped offset its losses.

Ford’s local arm has also courted profitability by pursuing private sales as opposed to cut-price fleet deals.

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