Ford will stop building the Falcon

Posted on Thursday, 23 May 2013 , 13:05:47 byVeronica

Filed under fordfalconamericantechnologyjobsFordAmericanTechnology

Ford will stop building the Falcon

In around 3 years, on the 16th of October 2016, to be more precise, American carmaker Ford will stop the activity from its Australian manufacturing plants. This will have a terrible effect for the around 1.200 employees who will lose their jobs. At these production plants, Broadmeadow and Geelong, now work 3.500 people that work to develop the Falcon and the Territory SUV. Bob Graziano, president and CEO of Ford Australia declared in a press conference that they have to stop manufacturing the model in the country because the company has lost $141 million after tax in the last financial year. Overall, in the last five years, the company has lost $600 million. We have to understand their position, but we can not feel bad for the ones that will suffer a lot as well because of the cancellation of the process. Graziano blamed it on the rising of the Australian dollar against other currencies as well. As it turns out, Holden will also cancel the development of the Commodore in 2016 and this is how the production of rear-wheel drive sedans will come to an end. The man also said that their costs are double that of Europe and almost four times Ford in Asia and this is how they have reached the conclusion that manufacturing is not viable for Ford in Australia in the long-term. Apparently, Australia has annual sales of around 1.1 million new vehicles and customers here have access to more than 65 brands and 365 models that are available for sale. We have to admit that this is the most competitive and crowded automotive market in the world. Ford has more than 125 years of history in Australia and this decision was not easy for sure. These are all the details on the matter for now, but we will keep you in touch with future plans. Source: Carscoops