Home – New Forums Other discussions Ford closing in Victoria, thoughts?

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  • #983314
    MatthewKeath
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    Ford has announced they are closing the Geelong and Broadmedow plants today with about 3,000 direct jobs and 10,000 + indirect jobs.

    The government has spend billions propping them up, only to see Ford’s sales to continue to slide.

    I would be interested in the communities views on this subject.

    #1141728
    bluepenguin
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    I think it was inevitable.

    Consumers want cars at prices that are unrealistic for local manufacturers to cater to. It’s now too expensive to be patriotic.

    In other industries, people are prepared to pay more for Aussie made products, but in the past few years, places like Korea and Thailand bucked the trend, and started making better quality cars than us – so there is little incentive to buy a Falcon or Commodore when you can get something that’s going to be cheaper to buy, cheaper to run and cheaper to maintain.

    It’s very sad for the workers and small businesses who will be effected by this, but I doubt it’s come as a surprise to anyone.

    Maybe if Ford had followed Holden’s lead, and threw some of their resources behind a semi-locally built smaller, lower-cost car like the Cruze instead of putting everything into large, fuel-hungry cars that people don’t want any more, the damage may not have been so bad.

    #1141729
    Burgo
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    Unfortunately we have become an expensive country to manufature in.
    Tis all very well for workers to receive good wages and conditions but the competition from overseas manufacturers is fierce.
    I have just heard that there have been a number of cleaning business gone bankrupt recently to to high wages and poor income due to the fierce competition

    #1141730
    NathanB
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    I think Ford bit the bullet first (as in before Holden) thinking about their long term future. The media will hype and smash this for weeks but I don’t think many will care once they realise they will soon be able by brand new Ford Falcon for $29,990 drive away instead of 39,990.

    I imagine Holden will follow suit rather rapidly now or they may risk an extended period in which Ford smashes holden on prices (much like everyone else is smashing them now).

    I do feel for the families that will be facing tough times ahead and wish them the best of luck! Maybe many of them will find some exciting new opportunities out of the bad situations.

    #1141731
    MatthewKeath
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    Burgo, post: 161906 wrote:
    I have just heard that there have been a number of cleaning business gone bankrupt recently to to high wages and poor income due to the fierce competitionHow does one out source a cleaning company?

    Germany has high wages and generous benefits still has a strong manufacting sector. We can’t compete with third world countries with wages, and we shouldn’t try. We need to do things smarter.

    #1141732
    Steve_Minshall
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    In 2012 Ford Global sold 2.2m vehicles.

    Of this less than 30k were Falcon/Territories.

    Ford Australia produces less than 2% of Ford’s global units, the only surprise is they survived this long. In global brand tables Falcon and Territory are way down in the five hundreds.

    For perspective the following cars you have probably never heard of sold the following last year:
    Wuling Sunshine: 525k
    Saipa Pride: 345k
    Foton Forland: 340k
    Wuling Hongguang: 300k

    And the best single model: Toyota Corolla 1.1m

    Finally, Australians bought 15,000 more Mazda 3s than Falcons and Territories combined.

    Unfortunately, there is little economic justification for any light vehicles to be manufactured in Australia.

    #1141733
    Steve_Minshall
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    MatthewKeath, post: 161987 wrote:
    How does one out source a cleaning company?

    Germany has high wages and generous benefits still has a strong manufacting sector. We can’t compete with third world countries with wages, and we shouldn’t try. We need to do things smarter.

    Germany respects its engineers and production workers.

    Australia is possibly the worst in the developed world in this regard. Therefore, manufacturing will never attract the smartest people.

    #1141734
    Burgo
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    Trying to do things smarter.
    I think the real problem is we dont have enough people, population wise to buy our goods and services at a price which has been set to offset the enormouse cost being incurred.
    In cleaning price per square metre has remained static where as wages and associated costs have risen quite dramatically. To adjust your price per square metre (that Industry leaders have been trying to get the message across ) has been ignored by many of the contractors because they fear they will price themselves out of future contracts.
    The Individual Contractor will pick up where the large ones fail because of the difference in their fixed costs. So what will eventually happen there will be a few big companies but the smaller more flexible contractors will be asked to pick up the peices.

    This could invigorate the industry into stting higher per sqare metre price

    The motor vehicle industry hasnt got the flexibility

    #1141735
    Ondetto
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    It’s certainly a worry for Geelong with Shell and Alcoa also on the brink, and now Ford closing down… At least there are still a few years before they actually shut shop, which will hopefully give people a chance to reskill?

    But then what – Geelong needs more jobs and I think there has to be a push to attract more companies / government offices to the area. Lower costs (than in Melbourne) and a motivated workforce should be quite attractive. Having the TAC head office here was a great win, and we need more of that. Maybe the Ford closure will give decision makes a nudge regarding having the NDIS head office in Geelong? There is a bit of expertise here already with Karingal and the TAC. See this article

    #1141736
    WhatsThePlanDan
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    It is very interesting – but as has been said fairly inevitable.

    It’s all very well to say they should have diversified and found export markets – but it seems like the US HQ held them back and basically vetoed any ideas on this front. They did try to export the Territory to Thailand (I think – it was a SE asia country) but the RRP ended up AUD100,000 with taxes and other costs so of course they barely sold the first lot of 100 they sent over.

    Everyone is saying Holden won’t be far behind but I’m not so sure. They do have the Cruze and they do have some (albeit small) success with export markets (middle east and now US). The new Commodore looks like a very good car and with the massive price drop might have some success. Regardless Holden have pretty well said this is the last ever Commodore – but they are planning a new model for manufacturing here.

    There’s been a lot of commentary around we are too expensive for manufacturing, etc and then comparisons with Germany who have similar costs yet do fairly well – perhaps we should be looking to what they are doing and why it works and trying to emulate that here.

    On a plus – the Aus designers and engineers for Ford and Holden are apparently very well respected and both companies intend to maintain a presence in these areas within Aus. This is probably the direction we should be going in – but this has issues as well as not every one can do highly intellectual work so where do they fit???

    I also agree with Burgo – with the collapse of the big players in the cleaning industry it is an opportunity for an influx of smaller (and maybe smarter?) players in the market. In the end it may lead to more jobs – who knows?

    Whichever way you look at it everything boils down to one thing – there is always opportunity in chaos so who is going to spot it and act on it (and let’s hope they’re Australian!!).

    Cheers
    Daniel

    #1141737
    WhatsThePlanDan
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    I thought this was absolutely hilarious and thought I’d share it on here…

    This is an excerpt from an article in Go Auto news (a car industry publication – I read it as my day job is on the fringes of the industry) talking about the Ford closure:

    Speaking at a hastily held press conference in southern New South Wales, where the company is launching its new VF Commodore, Mr Devereux (Holden Chairman) had listened intently as Ford’s conference call was relayed to assembled media via one of the new Commodore’s Bluetooth phone connections.

    Absolutely brilliant. Way to take advantage of a competitor’s PR – top work Holden!! :D

    Cheers
    Daniel

    #1141738
    bridiej
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    It is sad, but I’d rather that than the government keep giving them money. At the end of the day, it is a business. If I stop making a profit, can I expect a handout to keep me afloat from the government? No, so I don’t see why big companies should be an exception. Yes, I understand there are jobs going to be lost, but unfortunately if the car companies don’t make the kind of cars people want to buy then there’s no option.

    #1141739
    DrMegs
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    bridiej, post: 162489 wrote:
    It is sad, but I’d rather that than the government keep giving them money. At the end of the day, it is a business. If I stop making a profit, can I expect a handout to keep me afloat from the government? No, so I don’t see why big companies should be an exception. Yes, I understand there are jobs going to be lost, but unfortunately if the car companies don’t make the kind of cars people want to buy then there’s no option.

    I agree.

    But there was always a possible solution …

    Federal, state and local government to vastly increase their usage of Australian build vehicles. I can’t remember the figures of all new cars purchased by Federal, State and local governments every year but the numbers are huge, enough to make a real difference.

    Ford have received less than half the money given to Holden.

    When Holden got its first big tax payer funded hand out the first thing they did was to buy the champion Ford Supercar team, a hugely expensive cost..

    Holden could not beat the top Ford team so they bought them with our money.

    I was livid that OUR money being given to them to help protect jobs was being used to buy them victory they could not get earn on their own.

    [FS Concierge note: section outside the forum guidelines has been removed]

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