Minister on salvage mission to Ford

[Road_Warrior]

http://www.goauto.com.au/mellor/mell...257BF80025CF6F

Macfarlane says he wants “to do something with Ford”, despite factory closure plan

2 October 2013

By RON HAMMERTON

NEW federal industry minister Ian Macfarlane will get a tour of Ford’s Asia-Pacific design and engineering centre in Victoria next Wednesday as he looks to salvage something from the wreck of the Blue Oval’s manufacturing departure from Australia in 2016.

The visit to Ford’s operations at Broadmeadows, on Melbourne’s northern fringe, will be part of his orientation tour of the motor industry, which many pundits say is in the balance.

Mr Macfarlane will also visit Toyota Australia’s factory at Altona, in Victoria, while also talking with representatives of parts-makers dependent on the local motor industry for survival.

The newly installed minister is faced with the task of dealing with motor company pleas for more government assistance to assure its survival, while carrying out the Coalition’s pre-election promise to cut $500 million from motor industry aid.

Mr Macfarlane today toured Holden’s car factory at Elizabeth, in Adelaide’s north, before heading into private talks with Holden chairman and managing director Mike Devereux and South Australian premier Jay Weatherill on the future of the company.

He said his goal was to retain at least two car factories in Australia – the Holden plant in Adelaide and the Toyota plant in Melbourne – but added: “I’d like to think I could do something with Ford – I would like to have this discussion with the Ford people.

“I am going to Ford and Toyota next Wednesday, and I am going to see what we can do over there.”

Ford announced in May that it was planning to shut its Broadmeadows assembly plant and Geelong factory that turns out engines, castings and panels, resulting in the loss of 1200 jobs.

But the company plans to keep its Australian R&D operations that employ about 1000 people on various vehicle projects for Ford global customers.

Ford Australia communications and public affairs director Sinead Phipps today confirmed that the company was expecting a visit from Mr Macfarlane next week.

She said he would be given a tour of the company’s R&D centre and “shown some of the things we are working on”.

But she played down any hope that Ford might find a way to reverse its decision to shut down its Falcon and Territory manufacturing operation in Australia.

“We don’t envisage any major change to our strategy,” she said.

Mr Macfarlane floated a proposal for a new automotive “centre of excellence” research centre in Melbourne as part of his plans to support the industry.

Toyota Australia is yet to spell out what proposals it plans to put to Mr Macfarlane and whether it needs more aid to survive beyond current plans for Camry.

The company has consistently said it plans to go ahead with a refreshed model in 2015 for sale both domestically and in export markets.

The company announced in August that it would pump $123 million into the facelift of Camry and its V6 counterpart, the Aurion, including $23.6 million from the federal government.

Toyota is Australia’s biggest automotive exporter, sending 72,899 Camrys and Aurions overseas last year.

'allo 'allo, what's this then?

Ford said when it made the closure announcement that even some ridiculously high level of government dollars would still not have made it viable for them (words to that effect).

And if memory serves me correctly Mullaly and Mark Fields said at the media event in August that nothing can reverse Ford's decision.

We know they are keeping the R&D facilities - for the forseeable future at least - so I've got to wonder what this is all about. Perhaps he is simply seeking confirmation from them in confidence that there is nothing the new government can do for Ford, money or otherwise so the Government doesnt waste any more time with them, or perhaps he has a sniff there is something in the offing for Ford's manufacturing facilities and wants them to have a crack at it?

[Dave R]

Originally Posted by Road_Warrior

And if memory serves me correctly Mullaly and Mark Fields said at the media event in August that nothing can reverse Ford's decision.

I imagine that is because by 2016 FG will be well past its use-by date and considering Ford isn't currently developing a successor (to Falcon or Territory), they won't have anything to build anyway.

[Brazen]

2016 is still three years away, its probably prudent to visit them and see what the deal is. However I think his visit is probably more about the R&D facilities rather than manufacturing or maybe about seeing if Ford could sell the factory to another manufacturer.

[Brazen]

http://au.news.yahoo.com/a/19217174/...ing-ford-stay/

Govt to look at helping Ford stay

Federal Industry Minister Ian Macfarlane hasn't given up on saving Ford's car manufacturing operations in Australia.

The company has already announced plans to stop vehicle production in 2016, citing the high cost of local manufacturing.

But after touring Holden's assembly plant in Adelaide on Wednesday and beginning talks on ensuring the company's future, Mr Macfarlane indicated all might not be lost at Holden's traditional rival.

"I'd like to think I can do something with Ford," he said.

"I want to have another discussion with the Ford people. I'm going to see what I can do over there."

Citing losses of $600 million over the past five years, Ford president and chief executive Bob Graziano said in May that the company considered the high cost of manufacturing in Australia unsustainable over the long term.

He said the company would go ahead with new models of both the Falcon and Territory next year but would stop production in October, 2016.

The decision was expected to cost about 1200 jobs.

Mr Macfarlane said he did not have buckets of cash to throw at the auto sector and the government wanted it to become internationally competitive and survive without ongoing assistance.

But he wanted the industry to survive over the long-term.

"My goal is to see Australian cars built here for 100 years," he said.

[karj]

There are a lot of very optimistic enthusiasts on this forum, but Ford could not have made it any clearer that they are not interested in manufacturing vehicles in Australia.

Macfarlane's press conference today was interesting. He spoke about bringing all political parties together and taking the 'politics' out of the issue to ensure the long term survival of auto manufacturing in this country... and then about 5 sentences and 10 breaths later trashed the previous Labor government for ruining the auto industry.

Perhaps Macfarlane has forgotten who was Minister for Industry, Tourism and Resources between 2001 and 2007 when the Thailand-Australia Free Trade Agreement agreement was brokered...

[Brazen]

Originally Posted by karj

There are a lot of very optimistic enthusiasts on this forum, but Ford could not have made it any clearer that they are not interested in manufacturing vehicles in Australia.

They could of made it clearer.... By shutting the factory months ago. But I agree with you.

[Dave R]

Originally Posted by Brazen

They could of made it clearer.... By shutting the factory months ago.

They could have sprung it on their workers in 2016, but giving them 3 years notice was the respectful thing to do.

[karj]

Originally Posted by Brazen

They could of made it clearer.... By shutting the factory months ago. But I agree with you. .

I don't really see any ambiguity in their planned 3-year shutdown. If they had just announced the closure and implemented the factory shutdown quickly, it would have been a PR disaster. By doing it this way, they have given people 3 years to re-skill and find another job, thus limiting any bloodletting that would have damaged the entire Ford brand.

[Brazen]

Originally Posted by karj

I disagree. I see zero ambiguity in their planned 3-year shutdown. If they had just announced the closure and implemented the factory shutdown quickly, it would have been a PR disaster. By doing it this way, they have given people 3 years to re-skill and find another job, thus limiting any bloodletting that would have damaged the entire Ford brand.

In my opinion prolonging the closure over three years does much more damage to the brand, but perhaps it couldn't be done any quicker anyway. I can imagine sorting these out takes a lot of time.

[1TUFFUTE]

Originally Posted by Brazen

In my opinion prolonging the closure over three years does much more damage to the brand, but perhaps it couldn't be done any quicker anyway. I can imagine sorting these out takes a lot of time.

Really....wow. Dont quit your day job then.....unless u work for ford.

[Crazy Dazz]

The job of a Minister is to be seen to be doing something about whatever the public thinks it cares about this week.

[GQ_Smooth]

Originally Posted by Crazy Dazz

The job of a Minister is to be seen to be doing something about whatever the public thinks it cares about this week.

Very well put!

[Joe5619]

Originally Posted by karj

There are a lot of very optimistic enthusiasts on this forum, but Ford could not have made it any clearer that they are not interested in manufacturing vehicles in Australia.

Macfarlane's press conference today was interesting. He spoke about bringing all political parties together and taking the 'politics' out of the issue to ensure the long term survival of auto manufacturing in this country... and then about 5 sentences and 10 breaths later trashed the previous Labor government for ruining the auto industry.

Perhaps Macfarlane has forgotten who was Minister for Industry, Tourism and Resources between 2001 and 2007 when the Thailand-Australia Free Trade Agreement agreement was brokered...

Of course Ford (or any company) where going to make in clear they wanted out. They last thing they wanted to do was portray it like a "threat" or a discussion made with little thought. Anything can happen & maybe he can get them to change their mind. Ford also made it very clear the Falcon would have a V6 engine & build the Focus locally; do you see either of them around??

[Road_Warrior]

I’m just wondering if they could convince Ford to transmogrify its manufacturing operations from cars to components. Like automatic transmissions or engines for example. Trouble is though to do such a thing requires a big dollar investment to retool and reorganise the plant, money which Ford doesn’t want to spend in Australia.

[FPV GTHO]

I see that being more of a plan for Geelong than Broadmeadows.

[Syndrome]

Originally Posted by karj

There are a lot of very optimistic enthusiasts on this forum, but Ford could not have made it any clearer that they are not interested in manufacturing vehicles in Australia.

It appears denial is not just a river in Africa.

[Polyal]

His wasting his time. Ford has made the decision and Holden is wrapping up. When you start shifting engineers aswell as floor staff its pretty obvious.

Unless there is some niche in Asia Pacific that isn't being met I can see them using Fords plants for anything.

[DOA4]

The government is looking to buy the plant and they are going to make Lada's..well that's what I heard....Or did I dream it!!!
This is their sports edition....its got strips.

[Bossxr8]

Word is the factories in Geelong have already been sold to Toll anyway. Makes sense too because they are right next to the Geelong port which is under going a big expansion.

He just wants to show he is trying to do something, but Ford will not give 2 hoots, unless he wants to throw cash at PD.

[Ford_The_Win]

Saving Ford now would be like raising the Titanic, it aint gonna happen.

[last fairlane]

So who was the mimister from 2001 to 2007
I cant remember
John

[CyberWasp]

Can't they redo the factory to make shells / panels for all the 60's / 70's Falcons post 2016.
Would probably outsell the Commodore that way.

[FGII-XR6]

if the federal cash was right they could set up for CKD assembly for local and export markets. that would satisfy the needs of ford for higher volume and satisfy the governments desire for export production.
The laser plat at Homebush was doing this for local consumption only and was quite successful ( I did a tour there in 90). The main problem that caused closure was the techniques used in production were quite old and refitting the factory wasn't financially viable for a local only production scenario.

[XWGT]

Its a nice PR stunt but that's about it.

Ford Global will make more money with Australia as a 100% import market. No question. So that's what they will do.

The real issue is for Holden and Toyota who now have to make a case that they can keep the subsidiary suppliers alive with there volume only. Not an easy sell

[Road_Warrior]

Originally Posted by au3xr6

if the federal cash was right they could set up for CKD assembly for local and export markets. that would satisfy the needs of ford for higher volume and satisfy the governments desire for export production.
The laser plat at Homebush was doing this for local consumption only and was quite successful ( I did a tour there in 90). The main problem that caused closure was the techniques used in production were quite old and refitting the factory wasn't financially viable for a local only production scenario.

Hazard to guess a CKD operation in Australia would probably lose Ford more money than a bona-fide manufacturing setup, because you'd still have similar overheads/need a similar number of assembly workers but have extra costs from freighting the vehicle kits here from the primary manufacturing plant.

The only upside would be Ford Australia wouldn't have to wear any more huge R&D costs for Australia-specific models.

[Brazen]

With a skilled workforce you would probably want to have high margin niche vehicles.

Maybe a beefed up RHD F150 diesels for Australia, Africa, Europe and Asia, or an Australian developed F150 wagon or F150 jeep.

Obviously im just talking out of my @rse but there is some things that could be made here which piggy-back off the big R&D volumes overseas but are too small or niche for the large overseas factories.

As stated earlier 0% chance of anything happening.