Is it true, no Australian-built Fords after 2016?

We have seen reports coming out of Australia saying that Ford will cease manufacturing in Australia after 2016. These comments are just after Ford announced that over 400 jobs would go from their Melbourne and Geelong plants. Ford is also looking to reduce their daily production from 209 to 148 vehicles.

Ford Australia says comments by its president contending that vehicle research and development operations can survive without the manufacturing are not an indication the company is considering ending local production of its Falcon and Territory vehicles. However Ford is not in talks with any component makers in regard to any new models beyond 2016. This date relates to the $34 million funding from the Australian government in 2012 to assist Ford to produce local cars for the next four years.

In 2016 the Euro 5 standards begin and it looks like Ford will just be selling vehicles and not making any. As many as 3,000 jobs could be lost if manufacturing operations are to finish. This will also affect others from related parts manufacturers and suppliers. Ford's cuts come as the Falcon sales for the first half of 2012 slumped by a massive 24%.

One of Fords main suppliers and component manufacturer CMI Industries, who supply suspension components for Ford, confirmed the closure of two of its Melbourne factories for October, after a buyer could not be found.

A total of 119 jobs will be lost, 67 at Campbellfield and 52 at West Footscray.
All the Ford Australia suppliers are being urged to review their business models now to find out if they will survive the manufacturing closure. Unless they diversify and find new markets there will be no prospect for them.

The front, and all-wheel-drive Ford Taurus is the replacement for the rear-wheel drive Australian built Falcon, and a yet to be named crossover would fill in for the Territory.

Ford’s history in Australia goes back to 1925, and the company's closure would leave G.M. and Toyota as the only domestic manufactures.

According to the International Business Times, the principal reason for the Ford closure is the arrival of the Euro 5 emissions standards due in November 2016. These standards are going to be too stringent and it would cost Ford too much to re-engineer and retool for the Falcon sedan and Territory crossover to cope with.

October 2012