Ford vows to fight on after July shutdown

[borough]

http://theage.drive.com.au/motor-new...613-20alt.html

FORD AUSTRALIA says it is still committed to keeping its local car-making operations alive until 2016 despite idling its factories for seven days in July as Falcon sales reach new lows.


During the temporary shutdown, most of the company's 1800 blue-collar workers at the Geelong engine plant and Broadmeadows assembly line will be on half pay, but can top up wages by taking annual leave.
The stoppage comes as Falcon sales continue to nosedive - down 25 per cent on last year's record low.


Falcon sales have been weaker in the past three years than at any other point in the 52-year history of the nameplate, including the debut year of 1960 when the Australian car market was a fraction of the size it is today.
For almost five decades the Falcon had never been outside the three top-selling cars locally, but today it struggles to stay inside the top 20 and is outsold by small cars and utes.


Despite a record $290 million loss during Ford Australia's last financial period and what appears to be a terminal decline in Falcon sales, the car maker says it is committed to honouring its deal with state and federal governments to keep assembly operations open until 2016.


''There will be no job cuts as a result of these down days," said Ford Australia public affairs director, Sinead Phipps. ''This action hasn't changed our long-term plan. We are still doing our 2014 [update of the Falcon] that is part of the $103 million investment we announced in January.''
It is not the first time Ford - or other Australian car makers - have halted production at factories to match falling demand, but aside from Christmas/New Year breaks it is the first time in memory Ford has had so many consecutive days off.


Ford will shutter its plants on Friday July 6 and reopen Monday July 16, and then close again on July 20 and 27.
A spokeswoman for the Victorian Manufacturing Minister, Richard Dalla-Riva, suggested further financial assistance for the company was unlikely, saying the company was profitable and already supported by the state and federal governments.


Meanwhile, Holden announced yesterday next year's Commodore will be unveiled in February to coincide with its debut in North America as a Chevrolet. However the model will not be in Australian or United States showrooms until the middle of the year.

I suppose at least Ford has spoken out and saying that the plants will stay open until 2016.

[39ClevoUte]

Is that when the Gov bail out ends?

[jpd80]

Originally Posted by 54Ghia

Is that when the Gov bail out ends?

What bail out would that be?

[39ClevoUte]

http://news.drive.com.au/drive/motor...111-1pu2m.html

[Polyal]

Im more amazed they have made a release..thats good.

[jpd80]

Originally Posted by 54Ghia

http://news.drive.com.au/drive/motor...111-1pu2m.html

that's not a bail out, that's barely any assistance for two added years of business activity
2 x $1.5 billion revenue years that would otherwise be lost..

[BHDOGS]

Good on ford for speaking up another 4 years atleast that oughta stop the crap people always talk haha fat chance

[stevz]

Originally Posted by borough

I suppose at least Ford has spoken out and saying that the plants will stay open until 2016.

And what happens after that? Curtains?

[Polyal]

Originally Posted by stevz

And what happens after that? Curtains?

Your job next to guaranteed for the next 4 years?

[BHDOGS]

my jobs guaranteed but im in a business that will always be in demand the more people get upset the more my business increases.

[Polyal]

Originally Posted by BHDOGS

my jobs guaranteed but im in a business that will always be in demand the more people get upset the more my business increases.

But is it manufacturing or something that involves large investment? My point was that there is pretty much no guarantees these days (was there ever?)..Ford stating that they will make things work and continue to look forward is about as positive as you can get really.

[Buntz]

Headline should read:

"Ford vows to continue being ambiguous, and evasive." - Give us something to scare readers with.

Car news readers probably think Sinead Phipps is the CEO. She is the only person who says something from the company, and says nothing whilst doing that. Just words which have no conclusion, and don't answer the questions being asked.

[mik]

Originally Posted by BHDOGS

my jobs guaranteed but im in a business that will always be in demand the more people get upset the more my business increases.

funeral director?

[BHDOGS]

all good guesses but no security ford have said they will be here till 2016 after that who knows but cant we just enjoy it now its like sitting at home and not going out because your afraid of dieing your life always worried youll never enjoy it there here for 4 more years celebrate people can be gloomy told ya so's when fords gone

[Uncle Niceguy]

well why would they create a new falcon in 2014 if there "supposedly" shutting there doors 2 years later doesn't make sense to do the fresh falcon update if there going to shut directly after pretty much. so imo they'll be here well past 2016 and possibly until 2020 with the next model falcon. Where did the news that said "2016 the year ford will shut manufacturing" come about anyway? it just doesn't make sense to put all that fresh money for a new falcon shape down the gurgler if they are shutting shop in 2016.They may as well make an FGIII if thats going to be the case.

[jpd80]

Originally Posted by stevz

And what happens after that? Curtains?

There's still four years to run until that time.

Interestingly, Broadmeadows has now been configured to align with Ford Europe build process (EUCD).
If Ford was looking to wind down the plant, it wouldn't even entertain that idea.


What Holden and Ford need to do is hang on for now and wait for an economic improvement to come,
that is most likely going to happen in the second half of 2012, people look at skinny production but
that's not the issue, if both car makers have lost or wound back sales to fleets, then the loss of
income for those sales is disappointing but not the end of the world, the profitable core business is still there.

[jpd80]

Originally Posted by BHDOGS

all good guesses but no security ford have said they will be here till 2016 after that who knows but cant we just enjoy it now its like sitting at home and not going out because your afraid of dieing your life always worried youll never enjoy it there here for 4 more years celebrate people can be gloomy told ya so's when fords gone

Consider it 2004, and Ford has just said they will keep building the BF until 2008, and update the car in 2006
would we all be running around like chicken littles or wait another two years to find out what they're up to?

Originally Posted by BHDOGS

Good on ford for speaking up another 4 years atleast that oughta stop the crap people always talk haha fat chance

Think about iit, that's an unprecedented guarantee from Ford to keep making Falcon for another four years, that's ballsy.

[aussie muscle]

Originally Posted by jpd80

There's still four years to run until that time.

yay

[39ClevoUte]

http://www.canberratimes.com.au/nati...110-1t1sk.html

It doesn't look like much but it's supossed to do all this????

[TRUBLU4DS]

Sales are down due to their crap marketing & I also commented when the FG was
released that it would be the death of Falcon because its an ugly car.

[Wretched]

Originally Posted by TRUBLU4DS

Sales are down due to their crap marketing & I also commented when the FG was
released that it would be the death of Falcon because its an ugly car.

Crap Marketing is not the full reason why the Falcon is suffering.
Product planning and market shifts are the cause.
Holden have great marketing (according to many here) yet they also suffer from sliding Commodore sales.

The market has moved away from large sedans, just look at the monthly stats.

Whether or not the FG is ugly has nothing to do with the sales.
That is your opinion not fact.

[Joe5619]

Why are people linking artciles that are 5-6 months old??

[Dr Smith]

How about a Falcon hatch in the mould of an Audi Sportsback, more wagon then now and different enough to current sedan yet with more style....and using Mondeo base but with added global v6 and V8's and tdi, lpg...
http://www.goauto.com.au/mellor/mell...pg?OpenElement

[39ClevoUte]

Originally Posted by Joe5619

Why are people linking artciles that are 5-6 months old??

Because this package was quoted to take things through the dates that were being discussed.

[JPFS1]

People have short memories. Many years before January 2012 when the article in the OP was written, Ford announced a 1.8 BILLION dollar investment package in Australia which would coincidentally take them through to the end of 2016... so infact, even in 2006, FoA committed to Australia for the next 10 years, why should they be expected to come clean and give the game away for post 2016 plans?

[borough]

Originally Posted by JPFS1

People have short memories. Many years before January 2012 when the article in the OP was written, Ford announced a 1.8 BILLION dollar investment package in Australia which would coincidentally take them through to the end of 2016... so infact, even in 2006, FoA committed to Australia for the next 10 years, why should they be expected to come clean and give the game away for post 2016 plans?

Did you read the article linked? It relates to the July shutdown and was written on the 14/6/2012.

[My poor XF]

Originally Posted by borough

Did you read the article linked? It relates to the July shutdown and was written on the 14/6/2012.

Still doesn't alter the point he is making.

[JPFS1]

yes, they're sending the guys on a holiday for a week, paying them while they're at it.. good way to keep operating cashflow from being flushed down the toilet.

the point is, they are committed to manufacturing and have been for a long time.

The shutdown is temporary and a means to get through the tough times.

[wrongwaynorris]

" What Holden and Ford need to do is hang on for now and wait for an economic improvement to come,
that is most likely going to happen in the second half of 2012 "

It will NOT happen until the Gillard Government is GONE . Noone has any confidence in the economy and who can blame them .

[99AUXR]

I think its quite good that ford have shut down instead of staying open when they don't need to be, shows good company management and that they are being smart about their money. . . Unlike some companies who get bail outs.