Ford to close Aussie operations in 2016

[Gav]

Originally Posted by sambo

Labor government, blue collar jobs, translates into... votes!

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

[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.

[Merv and Sharon]

Originally Posted by sambo

Labor government, blue collar jobs, translates into... votes!

It seems that nation the size of Australia should be able to make something, rather than just dig it up and sell it off. Governments have pumped money and favours into the local car industry - Howard did so big time - as all governments do. Just look at the US bailout of GM. SAAB gone, Volvo on the way, the world market in cars in all about the multi-national big companies, cheap labour and government sweeteners unfortunately.

[Rebel1]

Originally Posted by Merv and Sharon

Just look at the US bailout of GM.

Merv, what the US feds did was not subsidize GM but bought a large holding of GM shares. That's a whole lot different than just handingover a fist full of money.

The US feds, bought the shares, then assisted in re-organizing GM which also included putting a cap on GM executive salaries.

Now, GM are on the come back and the US Feds are selling out their stake in the company. See here:
Government sells big hunk of GM stock

Whether the US Feds get all the money back is speculation but at the very least they will get a large part of it back and will not suffer the consequences of a full loss as will the Oz. Government with Ford.

Also note that other the other GM shareholders whose holdings were worth nothing at the time of GM claiming a the Chapter 11 have now not lost their total investment.

And this is the procedure I subscribe. Certainly assist the Industry, but do so by protecting the interests of the taxpayer as much as possible.

[sideshow]

Hopefully this is a wake up call to govt. which I doubt
That once the mining boom is over australia is fkt
If big business like ford is shutting down imaging how many small businesses
are closing, I know afew mechanical shops stuggling or closing down,
We r one of most expensive places to live in and it will fk us over in a decade or so
So many small businesses are doing it tough let alone the big companies like ford

[sambo]

I've never been able to work it out... labor cost is high because wages are high because prices are high because wages are high... vicious cycle. Dollar for dollar, money used to go a LOT further 10 years ago.

[Dimis]

Originally Posted by sambo

I've never been able to work it out... labor cost is high because wages are high because prices are high because wages are high... vicious cycle. Dollar for dollar, money used to go a LOT further 10 years ago.

What cant you work out?
The truth would be the same if you said the same in reverse. No?
Labor cost is low because wages are low because prices are low because wages are low... until greed rears its ugly head

Money used to go a LOT further 10 years ago, because there was less of it.
Commodities & assets are still "worth" the relative same.

...in my humble opinion of course.

[Aussie Mike]

I remeber my dad saying to me when I was a kid. "A new car is going to cost you about a years pay and a House is going to cost you 10 years pay". The same rings pretty true today for the average person.

Cheers

[Rebel1]

All totally valid but I sure do object to the millions of dollars of subsidies paid over a great number of years going down the drain.

Subsidies should only be paid by the Feds in return for stock ... that is a shareholding in Ford that can be resold.

[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.

[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.

[Gav]

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

[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.

[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.

[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.

[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

[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

[Rebel1]

I am always suspicious of large multi national Companies when they make claims as seen here:

Ford workers 'devastated' by announcement Victorian plants will close in 2016 | News.com.au

Note: "Ford CEO and president Bob Graziano "manufacturing is not viable for Ford in the long term" in a press conference this morning. Australia Ford operations have lost $600 million in Australia over five years."

Really, lost $600 million hey? .... And this is despite the taxpayers of Oz giving you over 1 billion since the year 2000.

If we sent in some forensic accounting types to look at the Ford Australia's Balance sheet, I bet we would find all manner of costs like two favourites used by US companies:

The first being: Loans ... In the US corporate loans can be sourced at damn near nil interest from the Feds. These funds are then "sent" to overseas subsidiaries but at an interest cost much greater than the local market.

Second: Licencing fees .... As a totally different legal entity Ford Australia could well be paying the Ford Holding company in the US a "licencing Fee" just to use the Ford name.

I suspect the pending closure is just a strategic move by Ford to a cheaper manufacturing centre.

The devil is always in the detail.

[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.