23 May 2013

Ford to close Australian manufacturing plants

5:05 pm on 23 May 2013

Ford Australia says it will close its Australian manufacturing plants in October 2016, with the loss of hundreds of jobs.

Ford president Bob Graziano said on Thursday that about 1200 workers would lose their jobs when the Broadmeadows and Geelong plants were shut down.

Mr Graziano was speaking in Melbourne after announcing that the company had lost $A141 million over the last financial year - taking losses over the past five years to more than $A600 million, the ABC reports.

"Our costs are double that of Europe and nearly four times Ford in Asia," Mr Graziano said.

"The business case simply did not stack up, leading us to the conclusion [that] manufacturing is not viable for Ford in Australia in the long-term."

The decision marks the end of an era for the Australian car industry, with the Falcon brand to be retired when the plants shut their doors.

Ford says it will continue to employ more than 1500 people in Australia in research and development and dealerships after 2016.

The Australian Manufacturing Workers Union said it feared more jobs would be lost as the knock-on effect from the plant closures flowed on into the wider auto parts industry.