Local car industry vital: Ford

[Road_Warrior]

http://news.drive.com.au/drive/motor...828-24xw2.html

Australia ran the risk of missing out on a golden opportunity to benefit from the explosive growth of the emerging automotive powerhouses of China and India, the president of Ford Australia, Bob Graziano, said today.

The Ford president continued to put pressure on the Australian government to support the local car industry, claiming that a local car industry was vital to the development of a "knowledge economy".

"If we're serious about Australia being a knowledge economy, we need strategic capability. A first-class education system and the ability to build things - high-tech, value-added products - like cars - are the building blocks.

Graziano’s calls echo those of rival brand Holden’s chairman and CEO Mike Devereux.

With sales of the locally made Falcon appearing to be in terminal decline – and many predicting the decline of the Falcon before the natural end of the current generation in 2016 Ford has turned the spotlight on its ability to design and engineering vehicles for the global stage.

Graziano claims the company's design and engineering operation is one of only three centres of excellence for the Ford world, along with Ford headquarters in Detroit and Cologne in Germany.

Ford claims the number of design staff at the Broadmeadows facility has almost tripled in the past 18 months. Graziano said the increase, coupled with technology upgrades, has placed the organisation in a strong position to develop cars for the world.

"Australia is one of only 13 countries in the world that can design and manufacture a vehicle from the ground up.

"The automotive industry is also the largest R&D contributor in the Australian manufacturing sector. Our ability to work on global vehicle programs is a critical part of this.

"We are also perfectly positioned to be involved with the next two automotive powerhouses - India and China."

Graziano was speaking at the opening of a new virtual reality design studio in Broadmeadows that allows designers to sit in a virtual car years before it is built.

He said the 1000-strong design and engineering workforce was evidence that Ford was not just a manufacturing concern.

"There's been a lot of focus on manufacturing - but here is where it all begins, the smart design and technical development that culminates in vehicles that are sold around the world.

Ford sales year-to-date are down by 5 per cent in a market that is up 10 per cent.

Most of that decline can be laid at the feet of the Falcon, with sales of the big Aussie sedan down by almost 30 per cent this year. Attempts to stimulate sales with LPG (EcoLPi) and four-cylinder EcoBoost versions have largely failed and Falcon sales are at their lowest in the nameplate’s 52-year history. If they continue on their current trajectory, sales will have completely dried up by the end of 2016. In reality, the end could come sooner than that.

The demise of the Falcon has been offset to a degree by stronger sales of the locally made Territory SUV and the imported Ford Focus small car.

In more recent months, the Ranger one-tonne ute has been selling strongly, although it is still yet to bounce back from supply problems caused by the floods in Thailand last year.

Ford Australia played a leading role in the design and engineering for the Ranger. It also engineered the Figo city car for the Indian market.

Some actual detail (and pics) about the new facility instead of the usual negative crap would be nice, good one Drivel :

Could we see more cars being designed by FoA for global markets?

[Dave R]

Ford claims the number of design staff at the Broadmeadows facility has almost tripled in the past 18 months.

He said the 1000-strong design and engineering workforce was evidence that Ford was not just a manufacturing concern.

"There's been a lot of focus on manufacturing - but here is where it all begins, the smart design and technical development that culminates in vehicles that are sold around the world.

It seems like he's trying to say that even if production of Territory and Falcon cease and they lose the manufacturing division, Ford is going to stick around as an engineering base for global projects, like the new Ranger.

[Road_Warrior]

Originally Posted by Adrenaline

It seems like he's trying to say that even if production of Territory and Falcon cease and they lose the manufacturing division, Ford is going to stick around as an engineering base for global projects, like the new Ranger.

Yes you could say that, but he also said:

"If we're serious about Australia being a knowledge economy, we need strategic capability. A first-class education system and the ability to build things - high-tech, value-added products - like cars - are the building blocks.

Then again, we don't know whether this was part of a press release or part of an interview or what - we don't know what sort of spin (positive or negative) the writer of the article has put on it. Some more detail would be nice.

[Nikked]

You can all but assume Ford are going to be making cars here post-2016...despite what the "experts" at Fairfax etc will try and report...

[Fiesta_Man69]

Originally Posted by Nikked

You can all but assume Ford are going to be making cars here post-2016...despite what the "experts" at Fairfax etc will try and report...

What if Joe Hockey follows thru on something he has said several times.... An alternative govt. would seriously slash or scrap the hundreds of millions of taxpayer dollars propping up Ford and Holdens local manufacturing.....?

[Bossxr8]

Doesn't really tell us anything we didn't already know. Fords R&D is going gangbusters and working on a number of projects for the Asian region, we all know that, but it says nothing of local production, and wether that will continue or not.

[DanielXR8]

Originally Posted by Nikked

You can all but assume Ford are going to be making cars here post-2016...despite what the "experts" at Fairfax etc will try and report...

I think he was having a bob each way, so whatever happens he can say he told us so. There was simply no confirmation of any Australian manufacturing post 2016, although you could imply he has his hand out for some money if anyone is interested in giving some.

[Nikked]

Originally Posted by Bossxr8

Doesn't really tell us anything we didn't already know. Fords R&D is going gangbusters and working on a number of projects for the Asian region, we all know that, but it says nothing of local production, and wether that will continue or not.

"If we're serious about Australia being a knowledge economy, we need strategic capability. A first-class education system and the ability to build things - high-tech, value-added products - like cars - are the building blocks".

Ford have never said that they are going to stop manufacture here either, its all media speculation...

Originally Posted by Fiestadude

What if Joe Hockey follows thru on something he has said several times.... An alternative govt. would seriously slash or scrap the hundreds of millions of taxpayer dollars propping up Ford and Holdens local manufacturing.....?

Politics is all hot air and one-up-man-ship...come election time, the thousands of tax-paying workers and there unions would have a strong voice...

[Fiesta_Man69]

Originally Posted by Nikked

Ford have never said that they are going to stop manufacture here either, its all media speculation...

When it is no longer financially viable, Ford will cease manufacturing in Australia. With reduced or no taxpayer assistance from the govt., Ford will pull the pin on what is, in the context of the global market, a tiny and insignificant market.

The media speculation you talk of is driven by Fords record loss last year and abismal sales figures of the Falcon. Hardly unwarranted I'd argue...

[Nikked]

Originally Posted by Fiesta_Man69

When it is no longer financially viable, Ford will cease manufacturing in Australia. With reduced or no taxpayer assistance from the govt., Ford will pull the pin on what is, in the context of the global market, a tiny and insignificant market.

The media speculation you talk of is driven by Fords record loss last year and abismal sales figures of the Falcon. Hardly unwarranted I'd argue...

Yet, its cheaper to manufacture here in australia, then many other countries...tiny market yes, insignificant...not by a long shot.

[Bossxr8]

Some more positive news, Marand Engineering are leasing out the Ford tool room to build parts for the Joint Strike Fighter.

Very clever thing to do, the tool room has everything they need and has been used to make plane parts before. Going back a decade or so Ford used to make tailplane panels for Boeing 747's.

[Nikked]

What did ford make there?

[Bossxr8]

All the tooling and fixtures for the stamping plant. Dies etc.

[Brazen]

Originally Posted by Bossxr8

All the tooling and fixtures for the stamping plant. Dies etc.

How can you have a car factory without a tooling room? What happens when you update models or maintain current presses? Serious question, just wondering do they outsource that kind of stuff nowadays? Last time I worked for a manufacturer was in the 80s for a rolling stock producer, so I'm sure things have changed since then.

[jpd80]

Originally Posted by Brazen

How can you have a car factory without a tooling room? What happens when you update models or maintain current presses? Serious question, just wondering do they outsource that kind of stuff nowadays? Last time I worked for a manufacturer was in the 80s for a rolling stock producer, so I'm sure things have changed since then.

Maybe it's cheaper to souce tooling needs from another division ...like FoE..

[JPFS1]

Significant amounts of work is out sourced, it's the only way sometimes, especially when a very specialized process is required.

Eg, There's a particular section of the stamped floor (territory/falcon) that comes in from china.

Marand are the guys that upgraded the plant for FG.

[TC200six]

Local car industry vital? Tell that to some of the Liberal MPs, not just Joe Hockey, but someone named Sue Boyce. They both have expressed their views that car industries are just a waste of taxpayers money and shouldn't exist if they can't survive without subsidies. I hope Ford have received the last handout they need already because they won't be getting more if the LNP win the next election.

[Road_Warrior]

Originally Posted by JPFS1

Significant amounts of work is out sourced, it's the only way sometimes, especially when a very specialized process is required.

Eg, There's a particular section of the stamped floor (territory/falcon) that comes in from china.

Is that the actual stamping or the die for it? I know when Holden was tooling up for VE production, all the tooling and dies for the body came from Japan.

[bmorris]

In a perfect world the government shouldn't have to give Ford or Holden (or Toyota) any money, they should run their businesses so that they are profitable or you just create a false economy.

However,

Governments around the world pour millions of dollars into keeping car manufacturing in their own countries, therefore it really tips the balance and fairness of the free market system. Therefore we have to cheat along with the rest of the world to make it possible for cars to be built in this country any longer.

[robertjp]

Originally Posted by bmorris

In a perfect world the government shouldn't have to give Ford or Holden (or Toyota) any money, they should run their businesses so that they are profitable or you just create a false economy.

However,

Governments around the world pour millions of dollars into keeping car manufacturing in their own countries, therefore it really tips the balance and fairness of the free market system. Therefore we have to cheat along with the rest of the world to make it possible for cars to be built in this country any longer.

And at the same time put large tariffs on imports to make them more unattractive. Doesn't Brazil or Argentina also require that local made produce (cant remember the %) needs to be exported by car importers as well? This is exactly what Australia is crying out for, but this will never happen.

[olds]

Then there's this article by the same jurno . Local manufacturing is not essential
http://www.theage.com.au/national/lo...828-24yux.html

[Fiesta_Man69]

Channel 7 News this morning: "Ford says days of local production are numbered." Ford Aus Ceo said that local manufacturing is not essential to Fords survival in Australia. After Fords current commitment to the Federal govt. (ie. the hundred million dollar bailout package) is up local production of cars will most probably cease.

Make of that what you will.

[Nikked]

lol...its pretty much the same thing recyled...


"Local manufacturing is not essential"


He never said that in the artical!

[Road_Warrior]

Originally Posted by Fiesta_Man69

Channel 7 News this morning: "Ford says days of local production are numbered." Ford Aus Ceo said that local manufacturing is not essential to Fords survival in Australia. After Fords current commitment to the Federal govt. (ie. the hundred million dollar bailout package) is up local production of cars will most probably cease.

Make of that what you will.

Are you a Fairfax journalist? That is not what Graziano said.

[Wretched]

another one

Ford hints end nigh for its car making

FORD has given the strongest hint yet it's considering a life in Australia without manufacturing. In a frank admission, the president of Ford Australia, Bob Graziano, said manufacturing was no longer critical to the Australian operation's survival.

''We believe you can have research and development without manufacturing. It clearly helps to have manufacturing and we're very fortunate in that we have manufacturing, research and development and a stunning test facility,'' he said yesterday.

His comments are a strong indication that Ford is preparing to ditch manufacturing in Australia once its commitments to the federal and Victorian governments are over.

In January, Ford and the two governments announced a $103 million deal to retain manufacturing of the Falcon and Territory models until the end of 2016.
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Ford spokeswoman Sinead Phipps told ABC radio that Mr Graziano was not implying that the company was planning to shut down manufacturing in Australia.

"There was no hint implied in any way shape or form," she said.

Ms Phipps said the Ford president was taking about "manufacturing in terms of the context of the design process".

She said that Ford was currently investigating "what comes after" 2016 for manufacturing in Australia.

With sales of the Falcon appearing to be in a terminal slump, and many predicting its decline before the natural end of the current generation in 2016, Ford has turned the spotlight on its ability to design and engineer vehicles for the global stage.

Mr Graziano says the company's design and engineering operation is one of only three centres of excellence for Ford, along with headquarters in Detroit and Cologne.

Ford says the number of design staff at the Broadmeadows facility in Victoria has almost tripled in the past 18 months. Mr Graziano said the increase, coupled with technological upgrades, has placed the organisation in a strong position to develop cars for the world.

''Australia is one of only 13 countries in the world that can design and manufacture a vehicle from the ground up,'' he said.

''The automotive industry is also the largest R&D contributor in the Australian manufacturing sector. Our ability to work on global vehicle programs is a critical part of this.

''We are also perfectly positioned to be involved with the next two automotive powerhouses - India and China.''

Mr Graziano was speaking at the opening of a new virtual reality design studio in Broadmeadows that allows designers to sit in a virtual car years before it is built.

He said the 1000-strong design and engineering workforce was evidence that Ford was not just a manufacturing concern.

Ford sales year-to-date are down by 5 per cent in a market that is up 10 per cent. Most of that decline can be laid at the feet of the Falcon - sales of the big Aussie sedan are down by almost 30 per cent this year.

[Sinead Phipps]

Hey folks - here is our response to the rubbish that was printed in Fairfax Media today:

An article has run in today’s The Age newspaper, quoting Bob Graziano in relation to the need for manufacturing to support design and engineering. While the quote they have run is correct, the context and the implications they have placed around it are completely inaccurate and do not reflect – in any way – the context of the question or Bob’s response. The question was about design, not about manufacturing and to spin it the opposite way is an insult to the entire Ford Australia team. At no stage did Bob comment on or give any indication that manufacturing was no longer a vital part of our business.

[Nikked]

Well said.

Hope it shuts up the idiots, that both print it, abd believe it.

[Road_Warrior]

I figured as much. Thanks Sinead.

I do have to wonder at what the hell Fairfax's problem is with those Drive journos. It's ironic they pursue matters about Ford with such zeal and vigour, when the fortunes of their own company are going down the toilet (what was it, a $2.7 Billion loss last FY and 1000 layoffs??)

[Jason[98.EL]]

thanks Sinead

your input here is greatly appreciated by many here

thanks for clearing up what those knuckle head journos put into their papers

thanks again

Jason

[aussie muscle]

Australia will end up like the UK, we're fine with service industry jobs, until the economy nosedives and we're all out of a job.

unfortunately the only thing that will save Australian manufacturing would be another pacific war, which is why we paid so much for GM to set up Holden for full local production in 1946.