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

And another one bites the dust. After 90 years of continued operation, Ford Australia will be closing their manufacturing facilities in the continental country by 2016. This means the demise of the Falcon (and its derivatives, like the Ute) and the Territory SUV.

All of this is due to three main factors.

The Australian dollar is incredibly strong compared to other global currencies. This is one of the reasons manufacturing locally in Australia has become an expensive proposition. All three major manufacturers in Australia – Ford, Holden, and Toyota – have incurred massive losses in recent years.

It also doesn’t help that sales of large RWD sedans Ford bets its bread and butter on are also falling out of favour with Australians. These cars – the Falcon and Holden Commodore – have seen declines in sales year after year.

And, to add one last issue to the mix, the ‘One Ford’ strategy is well at work in this situation. It has aimed to eliminate regional models since its inception. The Falcon and Territory, while somewhat popular in Australia, aren’t global vehicles.

Ford will lay off a significant part of their workforce – estimated to be around 1,200 workers – but will retain their R&D and product development facilities in the state of Victoria where Ford is based.

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