Ford Australia Lays Off More Plant Workers

Ford Australia lays off 212 workers after only 118 take voluntary leave as the car company downsizes in the face of shrinking sales of locally built vehicles.

The auto maker announced in July plans to make 440 workers redundant, but it found jobs within the company for the other 110.

Ford Australia President and CEO Bob Graziano continues to deny the U.S. parent intends to end Australian production after The Age newspaper reports workers at the auto maker’s Broadmeadows plant say they are not convinced the company can continue producing locally beyond 2016.

Graziano insists Ford Australia will continue to provide secure employment for its remaining 2,900 workers.

Federal opposition treasury spokesman Joe Hockey says 86% of the 1 million light vehicles sold in Australia last year were imported, despite the federal government’s infusion of A$1.01 billion ($1.011 billion) into the industry in the last financial year.

Federal Chamber of Automotive Industries data shows Ford, GM Holden and Toyota built 219,376 vehicles in Australia last year, down from 239,443 in 2010 and 334,772 in 2007.

The FCAI says Australians purchased 1,008,437 new vehicles last year, down 2.6% from 1,035,574 in 2010.

“People are not buying Australian-made cars because they don't want to buy Australian-made cars,” Hockey says on the Seven TV Network. “The cars are not meeting their demands.

“The bottom line is we need (a more) efficient car,” a transcript shows Hockey saying. “We need cars that consumers want, and then the motor vehicle industry will survive.”

Environment Minister Tony Burke says the challenge for Australian-made vehicles across the board is that the industry was behind the curve in moving to more fuel-efficient cars.

“A whole lot of the government investment that we have been putting into the car industry is about making sure we can have Australian-made hybrids,” he tells Seven TV. “(It is) about making sure we can have Australian-made, more-efficient cars.”