Federal Government says Ford, Toyota and Holden will survive until their shutdown dates

THE Federal Government says Ford, Toyota and Holden will not shut its factories early despite new lows for sales of locally-made cars.

THE Federal Government believes Ford, Holden and Toyota will not shut their factories early and there are funds set aside to ensure suppliers make it to the end of the line.

It means the 4000 workers across the three car manufacturers and up to 30,000 employees at parts suppliers will have up to three years to find a new job.

Ford is due to close its Broadmeadows car assembly line and Geelong engine and stamping plants in October 2016, while Holden will close its Elizabeth facility in late 2017, followed soon after by Toyota’s Altona site.

Due to shut down manufacturing in October 2016 ... Ford Australia boss Bob Graziano at Broadmeadows.

Most of the smaller factories that make components for all three brands are also destined to close about the same time, given that export opportunities are limited as the same parts can be made in low-cost neighbouring countries.

But as sales of locally-made cars continue to fall sharply, the industry is concerned parts suppliers may not be able to go the distance.

The Federal Minister for Industry, Ian Macfarlane, says he is confident all three of Australia’s remaining car manufacturers will fulfil their promise to keep their production lines running until the very end.

Confident ... Minister for Industry and Science, Ian Macfarlane at Monroe Australia’s plant in Clovelly Park, Adelaide.

Mr Macfarlane said Ford “doesn’t have that far to go” and he was “super confident about Toyota and I’m very confident about Holden”.

The Minister said $192 million in funding is available in addition to the remaining $700 million set aside in the Automotive Transformation Scheme after the Senate blocked cuts to industry support last month.

“The decision not to pursue the changes to the ATS is worth about an extra $192 million to the industry,” said Mr Macfarlane.

“I’ve said to the manufacturers that’s $192 million you can share with the component industry (parts suppliers) or you can give them your share, because that’s money you hadn’t factored into the bottom line.

“Having that extra bit of money in there, I’m more confident about the component industry. If the component industry holds up we’ve got an opportunity to keep the industry going until December 2017.”

Camry manufacture ... Workers at Toyota’s car factory at Altona in May last year.

Sales of locally-made cars are a record lows, with just 14,172 Australian-made vehicles sold in the first two months of this year.

It follows last year’s 60-year low when just 100,648 locally-made new cars were delivered.

Ford Falcon sales are down 12 per cent so far this year despite an updated model, Commodore sales are down by 16 per cent and the Toyota Camry was down 6.6 per cent last month.

This reporter is on Twitter: @JoshuaDowling