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Citing a $600 million loss over the last five years due to high costs and a strong Australian dollar, Ford will terminate all its production operations down under in October 2016, thereby eliminating 1,200 jobs. The Blue Oval will continue to import vehicles through more than 200 dealers, however.
Some insiders believe the adoption of the stricter Euro 5 emission standards in Australia starting on November 1st, 2016 put the final nail in the coffin.
“Our costs are double that of Europe and nearly four times Ford in Asia,” Ford Australia CEO Bob Graziano said. “The business case simply did not stack up. Manufacturing is not viable for Ford in Australia.”
The company has sold vehicles in Australia for almost 110 years and manufactured in the country since 1925, when founder Henry Ford first started assembling Model Ts there.
Australian auto industry by the numbers:
Source: Automotive News
Some insiders believe the adoption of the stricter Euro 5 emission standards in Australia starting on November 1st, 2016 put the final nail in the coffin.
“Our costs are double that of Europe and nearly four times Ford in Asia,” Ford Australia CEO Bob Graziano said. “The business case simply did not stack up. Manufacturing is not viable for Ford in Australia.”
The company has sold vehicles in Australia for almost 110 years and manufactured in the country since 1925, when founder Henry Ford first started assembling Model Ts there.
Australian auto industry by the numbers:
- 1.1 million cars built in 2012;
- 65 makes;
- 365 models;
- 22,683,000 inhabitants.
Source: Automotive News