Ford Oz Chief Confident in Post-Manufacturing Future

Ford Australia is preparing for life after the death of its local manufacturing operation.

“We believe we can have research and development without manufacturing," President Bob Graziano is quoted as saying at the opening of a new virtual-reality design studio in Broadmeadows outside Melbourne. The studio allows designers to sit in a virtual car years before it is built.

Graziano says the number of design staff almost has tripled in the past 18 months and the increase, coupled with technology upgrades, has placed Ford Australia in a strong position to develop cars for the world.

The 1,000-strong design and engineering workforce is evidence Ford Australia is not just a manufacturing concern, he says.

"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,” The Age newspaper quotes him as saying.

The subject of continued local manufacturing is a major topic of conversation within the industry, with deliveries of Ford’s once-dominant and locally built Falcon sedan off almost 30% this year and its July sales of 941 units the second-worst result in the 52-year-old nameplate’s history.

Graziano says Ford Australia’s design and engineering operation is one of only three Ford centers of excellence, along with Detroit and Cologne in Germany.

In a message aimed at getting more support from the Australian government, he says the country runs the risk of missing a golden opportunity to benefit from the explosive growth in Asia.

“We are also perfectly positioned to be involved with the next two automotive powerhouses, India and China,” Graziano says.

A local vehicle industry is vital to the development of a knowledge economy, he adds.

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

“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.”