Victim of a strong Australian dollar and a weak market for large vehicles - like the Falcon and the Terriotry SUV - has led to the demise of Ford's Australian arm. The wrap up will take three more years after which, Ford Australia as the world knows it - will cease to exit - taking down with it the Australian-spec Falcon with it.

Ford to shut down all production in Australia by 2016

Post October 2016, Ford will only sell their global vehicles like the Fusion, Focus and probably also the EcoSport compact SUV in Australia. Approximately 1,200 workers are expected to lose their jobs when the two manufacturing facilities situated in Broadmeadows and Geelong shut down. Ford has built cars in Australia since the Model T in 1925. 

 

The shocking and unfortunate decision was hammered by the Board in Detroit via an email to Ford Asia-Pacific president, Dave Schoch on Wednesday. Ford says its Australian arm has sustained losses amounting to 600 million dollars over the last five years. The strength of the Australian dollar has made manufacturing more expensive, while sales have been uninspiring. 

Ford to shut down all production in Australia by 2016

"Our costs are double that of Europe and nearly four times Ford in Asia" Bob Graziano, the chief executive, Ford Australia said. "The business case simply did not stack up" 

 

He added that "manufacturing is not viable for Ford in Australia in the long-term."

 

Ford will continue to produce 148 cars a day until it closes its doors, unless demand drops further.