Topic: Ford Manufacturing Pulling Out Of Australia

[Autos_Editor]

Australia, home of the Falcon, will be down one domestic manufacturer by 2016.

Read More...

[redman]

" The Falcon and Territory, while somewhat popular in Australia, aren’t global vehicles."

Here's an idea, make them global vehicles. There is a new interest for RWD cars in N.A.

[MarkStevenson]

" The Falcon and Territory, while somewhat popular in Australia, aren’t global vehicles."

Here's an idea, make them global vehicles. There is a new interest for RWD cars in N.A.

I'd love to see the Falcon come to North America. But, as GM has proven time and time again, the economics of doing so doesn't make sense. Costs of manufacturing are too high to compete with other rear wheel drive vehicles on the market.

[Rupert]

   RWD is only a minor entity overall and will remain so. AWD might go the same way IMO...higher fuel consumption for both, complexity of the latter and inferior traction and interior space the former. Not to say that RWD does not have a place in some vehicles where the concept has a following.
   I suppose that Ford will still export to Australia maybe from the UK.

[Fobroader]

Thats sad, its too bad, Australian Fords are actually cool, their fast rwd sedans are awesome. Too bad here wankerific FWD is the king. Id rather have this  :



than this  :

[Sir Osis of Liver]

Falcon and Commodore sales have been circling the bowl for years. Even in Australia people have lost interest in owning big RWD sedans. The high Aussie dollar makes exporting them a tough business case to make.

It really sucks, but here we are.

[redman]

Falcon and Commodore sales have been circling the bowl for years. Even in Australia people have lost interest in owning big RWD sedans. The high Aussie dollar makes exporting them a tough business case to make.

It really sucks, but here we are.

This is what Carney (former governor of the Bank of Canada) has to say about the high dollar and how it relates to the Canadian automotive sector.

".. But a stronger currency also reduces the cost of productivity-enhancing equipment and imported inputs in Canadian manufactured goods. For instance, each car built in Canada contains about $15,000 worth of imported parts, double the global average of $7,400 (U.S.)."

http://www.theglobeandmail.com/commentary/departing-carney-reminds-us-why-canada-works/article12074289/?cmpid=rss1&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheGlobeAndMail-National+%28The+Globe+and+Mail+-+National+News%29

Higher dollar is apparently a good thing for the Canadian auto sector.

[Sir Osis of Liver]

The line before that quote is:"Yes, a higher exchange rate can hurt non-commodity exports. " And it has.

We have to work a lot harder to increase productivity (new equipment low cost parts imports) to compensate for the high dollar. It is not a net benefit to the auto sector.

[Snowman]

Australia is a small captive market and I am surprised the auto industry there has survived this long. The cost of living is brutally high in Australia compared to Canada as we benefit from the monstrosity to the south. The resource industry has driven up the currency to the point where it cannot compete with its Asian neighbors. Now that the commodity super cycle has ended there will be more challenges for Australia....and Canada. 

[mixmanmash]

Thats sad, its too bad, Australian Fords are actually cool, their fast rwd sedans are awesome. Too bad here wankerific FWD is the king. Id rather have this  :



than this  :

Agreed!  I'll even take a Commodore SS over an Impala.

[redman]

The line before that quote is:"Yes, a higher exchange rate can hurt non-commodity exports. " And it has.

We have to work a lot harder to increase productivity (new equipment low cost parts imports) to compensate for the high dollar. It is not a net benefit to the auto sector.

Once again your opinion. I'll lean on the words of Carney in regards to the high dollar and the Canadian auto sector.

[Northernridge]

I find this very interesting. It's not hard to find all kinds of business/economic commentary about Ford closing shop in Australia. Implications for the Canadian auto industry abound. Canada has been receiving steadily declining investment in assembly plants compared to US and Mexico in recent years and car companies have become very sheepish about assembly overcapacity, plus reducing labor costs remain a priority...and our dollar is still stubbornly high. We're not an island like Australia and we live next door to the US market so their sitch is different, but still...

[johngenx]

We need the US to keep their insanely expensive private health care.  One reason we've kept the manufacturing we have is the low health care costs.

Go HMOs!!

[Fobroader]

Thats sad, its too bad, Australian Fords are actually cool, their fast rwd sedans are awesome. Too bad here wankerific FWD is the king. Id rather have this  :



than this  :

Agreed!  I'll even take a Commodore SS over an Impala.

Again, this is an easy one. Would you rather have a fat, fwd rental car  :



Or a fire breathing, M5-esque, rwd, V8 super sedan  :

[Sir Osis of Liver]

The line before that quote is:"Yes, a higher exchange rate can hurt non-commodity exports. " And it has.

We have to work a lot harder to increase productivity (new equipment low cost parts imports) to compensate for the high dollar. It is not a net benefit to the auto sector.

Once again your opinion. I'll lean on the words of Carney in regards to the high dollar and the Canadian auto sector.

Those were Carney's words, you just clipped the part that didn't agree with your belief.

[Scarecrow]

This is what Carney (former governor of the Bank of Canada) has to say about the high dollar and how it relates to the Canadian automotive sector.

".. But a stronger currency also reduces the cost of productivity-enhancing equipment and imported inputs in Canadian manufactured goods. For instance, each car built in Canada contains about $15,000 worth of imported parts, double the global average of $7,400 (U.S.)."

http://www.theglobeandmail.com/commentary/departing-carney-reminds-us-why-canada-works/article12074289/?cmpid=rss1&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheGlobeAndMail-National+%28The+Globe+and+Mail+-+National+News%29

Higher dollar is apparently a good thing for the Canadian auto sector.

This is true.  But the million-dollar question is: Are auto manufacturers in Canada actually investing in this productivity-enhancing technology?  I don't think they are.  At least not to the degree that it will make the difference.

[safristi]

Ford pulling out of OZ........i guess the OUTBACKS didn't sell well Mate ..

[redman]

The line before that quote is:"Yes, a higher exchange rate can hurt non-commodity exports. " And it has.

We have to work a lot harder to increase productivity (new equipment low cost parts imports) to compensate for the high dollar. It is not a net benefit to the auto sector.

Once again your opinion. I'll lean on the words of Carney in regards to the high dollar and the Canadian auto sector.

Those were Carney's words, you just clipped the part that didn't agree with your belief.

I only clipped the part referring to the automotive sector not overall commodities. We are on an auto blog.

[Snowman]

The line before that quote is:"Yes, a higher exchange rate can hurt non-commodity exports. " And it has.

We have to work a lot harder to increase productivity (new equipment low cost parts imports) to compensate for the high dollar. It is not a net benefit to the auto sector.

Once again your opinion. I'll lean on the words of Carney in regards to the high dollar and the Canadian auto sector.

Those were Carney's words, you just clipped the part that didn't agree with your belief.

 

[MKII]

Ford to maintain Canadian factory footprint despite high labor costs
Investment plan in works for Oakville plant
May 21, 2013 - 12:49 pm ET
TORONTO (Bloomberg) -- Ford Motor Co., Canada's top-selling automaker, is confident it can preserve its manufacturing profile in the nation despite unfavorable operating costs tied to the high Canadian dollar, the company's lead executive for the country said.

"We are optimistic despite the Canadian dollar where it is," Dianne Craig, chief executive officer of Ford Canada, said Tuesday during the Bloomberg Canada Economic Summit in Toronto. "So it's between the business partners that we have, certainly the government, that will enable us to at least keep the footprint that we have today."

Ford says it pays its richest wages and benefits in the world to workers in Canada, where it has retrenched to just one assembly plant.

The U.S. automaker is working on an investment plan for its Oakville plant, outside Toronto, though it's "not ready for prime time yet," she said



Read more: http://www.autonews.com/article/20130521/OEM01/305219935#ixzz2U8mhYT5u