Ford Ends Manufacturing in Australia; GM Holden Builds Last Cruze

Ford ends 91 years of manufacturing in Australia, laying off the last of its 600 assembly line workers as it continues a transition toward a sales-and-marketing and R&D operation.

As the final Falcon rolled off the Broadmeadows Assembly Plant line in Victoria state, 160 employees move to new product-development roles as part of A$300 million ($227.4 million) R&D investment this year,

Ford says it will be Australia’s leading automotive employer by late 2017 with 2,000 workers.

On the same day Ford was shuttering its plant, rival GM Holden marked a milestone as the final Holden Cruze rolled off the production line in front of grim-faced workers at the Elizabeth assembly plant in South Australia.

GM Holden also is transitioning from manufacturing to a design, engineering and importing business.

The two companies, along with Toyota, which also is ending production, were the victims of federal government tariff policies and Canberra’s decision to slash industry subsidies and grants given in most countries to ensure the industry continues.

The result was a flood of low-cost imports that climbed up the sales tables at the expense of higher-priced domestic models.

Ford Australia says it will continue as one of Ford’s global product-development hubs and will deliver the innovation, creativity and know-how vital to the company’s future.

But the Falcon name – for 50 years as ubiquitous Down Under as kangaroos and koalas – will disappear.

Ford Australia President and CEO Graeme Whickman admits it was an emotional day.

“We are saying goodbye to some of our proud and committed manufacturing employees and marking an end to 91 years of manufacturing in Australia,” he says in a statement.

But Whickman says there is a future for the company.

“Ford will remain a major presence in Australia and we will carry forward the legacy of our manufacturing team by continuing to design and engineer world-class vehicles for Australia and the world for many years to come,” he says.

Ford’s R&D center in Geelong, Victoria, will continue to support advanced engineering work. Once designed and engineered, all vehicles will go through their paces at Ford’s 2,247-acre (950-ha) proving ground in Lara outside Geelong, which replicates some of the world’s toughest driving conditions.

The team also tests prototype vehicles across the country’s expansive and punishing terrain.

Cruze Best Quality in GM Holden History

The money from the action of the final salable Falcon, Falcon Ute and Territory will be used to support the establishment and expansion of student robotics programs in Broadmeadows and Geelong schools.

Ford is working with its nearly 200 dealers to transform the brand, vehicle lineup and customer experience. It says more customers are servicing their vehicles at Ford dealerships and the company’s retail sales are steadily increasing in a shift from a heavier mix of fleet business to more sales to individual buyers.

Ford also plans to roll out 20 new or refreshed vehicles by 2020.

Meantime, GM Holden Chairman and Managing Director Mark Bernhard says the final Cruze hatch and sedan have been donated to GM Holden’s longtime charity partner, the Leukemia Foundation, which will raffle the cars to raise funds for patient transport services and accommodation.

GM Holden Manufacturing Executive Director Richard Phillips says the current Cruze and Commodore models were the best-quality cars GM Holden has ever built.

“As with any other model ending production, we hold 10 years of spare parts, and there will be no change to warranties or service agreements,” Phillips says.

The end of Cruze production will see about 270 GM Holden employees leave the company throughout October and into November, all on a voluntary basis. This is fewer than forecast in July, due to ongoing domestic demand for locally made Commodore models.

GM Holden will build the Commodore at Elizabeth until late 2017.

The automaker says after 2017 it will retain a significant presence in Australia for the long-term, including its sales and marketing operations, spare parts organization, design studios and an ongoing engineering department.

As a full-line importer, GM Holden will refresh or replace every model in its portfolio by the end of 2020.

Meantime, The Age newspaper reports a group of Ford fans gathered at Broadmeadows to be there as production ended. Said one: “To think I won’t ever be able to buy a new Australian-made Ford ever again. It just doesn't seem right.”