Ford committed to factory closures: Graziano

[Road_Warrior]

http://www.carpoint.com.au/news/2013...MEIwJk5uZT0xNQ..

Graziano says industry minister welcome to visit but there is no prospect of a reversal
Ford Australia president and CEO Bob Graziano (pictured) says he will welcome a visit from new federal industry minister Ian Macfarlane this week but rejects any chance of the company’s decision to end local manufacturing being changed.

“We are not going to reverse the decision we have taken,” Graziano told motoring.com.au.

Graziano also made it clear Ford could not guarantee it would continue to build the Falcon and Territory at its two Victorian plants all the way out to October 2016.

“We have always talked about it as our intent to go to 2016 and we are committed to getting there if we can,” he said. “But I cannot predict what would happen externally that may prevent us from doing that."

During a tour of Holden’s operations in Adelaide last week Macfarlane revealed his desire to convince Ford to stay in Australia as a manufacturer.

Graziano announced in May that Ford would close its two Victorian plants, cease manufacture of the Falcon sedan and ute and Territory SUV and retrench 1200 workers no later than October 2016.

The Blue Oval has lost $430 million on its Australian operations in the last two years as Falcon sales have dived in a splintering market turning away from large cars.

"I'd like to think I can do something with Ford," Macfarlane was quoted as saying. "I want to have another discussion with the Ford people. I'm going to see what I can do over there."

Graziano said he had read Macfarlane’s comments in the newspapers.

“It would have surprised me if he didn’t [want Ford to stay as a manufacturer],” he said. “But I think he will come down and we will have the conversation and we will see where it goes."

Graziano said he was pleased Macfarlane was visiting Ford.

“I have known him since I have gotten down here and I have a tremendous amount of respect for him and so I am looking forward to having a conversation with him about Ford.

“I just want to provide him with an overview of the company. We have not had the chance to have that conversation, and maybe show him around a bit. He is new in his role and in that capacity I am really anxious to talk to him about the company.

“I think it is an opportunity for us to talk to him about ... what we do today and what it is we will be doing in the future. I haven’t had the opportunity to have that conversation with him in that role and I am really pleased he is coming.”

Macfarlane's automotive plate is already full as Holden seeks additional taxpayer funding to keep building cars in Australia.

If a deal can't be reached, that would leave Toyota Australia as the only local manufacturer and facing a tough challenge to survive, given the supplier economies of scale issues it would face.

Falcon sedan sales dropped to record lows in July and August below 600, but lifted in September to 846. There have been 12 recent production down days to cope with the slowing demand, although no more are scheduled for 2013.

Graziano says Ford remains committed to a $103 million “freshening” of the Falcon and Territory in 2014.

“I think we did about 2300 vehicles (Falcon sedan and ute and Territory) off the platform last month, which wasn’t a bad go for a month,” he said. “We are very focussed on getting that freshening out there and seeing where we go from there."

He said he understood why there was scepticism about whether Ford would operate its Broadmeadows assembly line and Geelong engine plant all the way out to October 2016.

“People want guarantees and what we continue to say is that is the intent – to go to the end of October 2016.

“And people say ‘you are not being specific and you’re not guaranteeing and you are not committing’. We are just trying to be honest.

“But right now we are focussed on that freshening and taking it to October 2016, and that hasn’t changed from May.”

No surprises there. But I note for the first time in the media he is flagging the prospect of the plant closures being brought forward – if the market/economic conditions leave Ford with little option that is.