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(New Zealand Herald)   Ford halts car production in Australia after profits go down under   (nzherald.co.nz) divider line 17
    More: Fail, Australian Plants, Australians, account of profits, Geelong, Victorian Government, factory  
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1080 clicks; posted to Business » on 23 May 2013 at 10:41 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-05-23 10:45:17 AM
I'm surprised they stuck it out so long. four straight years of increasing losses, labor cost double that of Europe. It's bad when you bring cars in from Germany cheaper than you can build them locally.
 
2013-05-23 10:55:46 AM
So who got the last of the V8s?
 
2013-05-23 11:14:28 AM
In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.
 
2013-05-23 11:44:04 AM
Ford New Zealand spokesman Tom Clancy said that while the news would "have a major impact on our co-workers across the Tasman, the restructure does not extend to Ford New Zealand."

Of course, he includes international conflict and intrigue whenever possible.
 
2013-05-23 02:15:51 PM
Australia is dooming itself with its insane exchange rate/inflation.
 
2013-05-23 04:21:20 PM
How are the other companies doing? Barely holden on I bet......
 
2013-05-23 04:30:52 PM

New Age Redneck: How are the other companies doing? Barely holden on I bet......


Win.
 
2013-05-23 04:42:46 PM

ha-ha-guy: In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.


not a chance, their labour costs are way to high
 
2013-05-23 05:11:14 PM

kmfjd: ha-ha-guy: In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.

not a chance, their labour costs are way to high


This.

They need to seriously devalue their currency before anyone wants to manufacture anything there.

Australia seems to only exist on tourism, mining, and real estate at this point.
 
2013-05-23 06:15:00 PM

ha-ha-guy: In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.


By that time the build quality of Indian cars will have surpassed that of Australian made cars. They, along with Chinese cars will eventually comprise most of the cars sold in Australia.
 
2013-05-23 06:16:11 PM

flaminio: So who got the last of the V8s?


Australian Fords and Holdens (GM) use American V8s.
 
2013-05-23 09:27:38 PM
Well it's not a very big market.  So the Ford brand will be shiat in Australia, sounds like it already was any way.
 
2013-05-23 11:00:47 PM

kmfjd: not a chance, their labour costs are way to high


Their currency isn't going to stay up there for every.  Once China's manufacturing sector contracts more, the demand for Aussie resources drops, and there goes the majority supporter of the Australian Dollar.  That will take a major bite out of their labor costs and leave them just with the issue of economies of scale.
 
2013-05-23 11:01:55 PM

kg2095: ha-ha-guy: In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.

By that time the build quality of Indian cars will have surpassed that of Australian made cars. They, along with Chinese cars will eventually comprise most of the cars sold in Australia.


The only way the quality will surpass Australian/First World made cars is if they continue to allow Indian and Chinese junk flood their market - to lower the overall quality.

If you've seen the crash testing for Chinese and Indian cars, you would be safer in 1950's era land yachts from the US. Even Japan would be more preferable for their First World level of attention to quality.

As for Ford, good riddance to another Eurotrash golfcart maker. Let GM pick up the additional sales of actual cars and trucks through their Holden arm.
 
2013-05-23 11:04:39 PM

pjbreeze: Well it's not a very big market.  So the Ford brand will be shiat in Australia, sounds like it already was any way.


Thank Mulally for delivering the final blow.

It's now shiat in Australia and the US, and has always been that way elsewhere.
 
2013-05-23 11:11:04 PM

Lunchlady: Australia is dooming itself with its insane exchange rate/inflation.


Doesnt help that they made the Faustian deal with China. Aside from their rejection of Huawei, they cant seem to separate themselves from the influence of the Middle Kingdom.
 
2013-05-24 08:16:15 PM

sethstorm: kg2095: ha-ha-guy: In the long term, auto manufacturing will likely come back to Australia once India's demands for cars picks up.  You can have some factory in Australia spitting out left hand drive cars and then ship them off to India or sell them domestically.  Obviously the cheaper cars will just be made in India by people like TaTa, but the luxury ones where build quality matters would be candidates for Australian production.  Indonesia and Malaysia would also help with demand.

The thing that kills Australia is right now the right hand drive Chinese market is the all consuming Asian market and it is easier to have a factory in North America America or Europe just spit out right hand drive cars for local sale and to fill up the freighters headed for Asia as well.  For left hand drive, the UK is the main market, so it makes the most sense to build your cars closer to where you'll see the majority of them.  22 million people in ANZAC is not a major market.

Drive by wire will also help in that you'll have fewer mechanical differences due to the lack of a physical steering column.  That would open the door to bringing manufacturing back to Australia and you could run left hand and right drive on the same line since the only changes would be how you stuck the interior in.

By that time the build quality of Indian cars will have surpassed that of Australian made cars. They, along with Chinese cars will eventually comprise most of the cars sold in Australia.

The only way the quality will surpass Australian/First World made cars is if they continue to allow Indian and Chinese junk flood their market - to lower the overall quality.

If you've seen the crash testing for Chinese and Indian cars, you would be safer in 1950's era land yachts from the US. Even Japan would be more preferable for their First World level of attention to quality.

As for Ford, good riddance to another Eurotrash golfcart maker. Let GM pick up the additional sales of actual cars and trucks thr ...


Rented one of these for a month, beautiful car

cdn.caradvice.com.au
 
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