Report: Ford to exit Australian manufacturing in 2016
Facing slow sales and increasingly stringent emissions standards, Ford might be looking to shut down its Australian manufacturing.
Less than a month after Ford's Australian division announced it would cut 15 percent of its workforce to trim output in response to slow sales, it seems that more storm clouds could be hovering on the horizon for Oz's third largest automaker.
Ford will shut down its Australian manufacturing altogether in the near future, according to a report from the International Business Times. If accurate, the news means that while the automaker will continue to sell vehicles in the country, its locally-produced models (such as the Falcon sedan and Territory crossover) will be no more.
Lackluster sales and the looming Euro 5 emissions standards, which the Falcon and Territory can't meet without costly revisions, are likely behind Ford's decision.
"It's going to be a slow death, or nearly a death by 1,000 cuts for some of the suppliers," said Stephen Longley of PPB Advisory, a receiver for collapsed automotive suppliers. "There's been no announcements. The expectation though, is that this will happen.
"And without any announcements, all the people I deal with in the supply chain are assuming this is going to be the case. So decisions are being made on the basis that Ford Australia will definitely not be around from 2016."