Ford shutdown: Taxpayers spent $7000 for every Ford Falcon four-cylinder built
EMOTIONS were running high as Ford shut its Broadmeadows doors for the last time today, putting an end to an era.
THE Ford Falcon got an emotional send-off as the shutdown of Broadmeadows ended 91 years of manufacturing in Australia for the US car giant today.
In a telling sign about Australia’s changing taste in cars, the overwhelming majority of Ford workers leaving the factory were driving imported vehicles. One of the few locally-made cars to emerge at the end of shift was an old Toyota Camry.
FORD IN AUSTRALIA: Comprehensive illustrative history
Some workers leaving the factory were too upset for words, others were happy to be retiring with a $250,000 payout, which they likened to a “lottery win”.
After 40 years of service, 62-year-old Wayne Mann said: “I’m feeling really good, I’ve got a quarter of a million dollars to say goodbye,” said Mr Mann.
“What other company gives you a quarter of a million dollars to leave. I’m retiring, thank you very much. Not sad at all.”
Ford maintenance worker George, 25, who declined to give his last name, said he has been with the company for seven years and has got a job in a pizza shop after this.
Speaking to News Corp near a milk bar across the road from the factory, he said the mood inside the factory was “sad but happy”.
“We’ve had three years to prepare,” he said. “It’s sad but we knew it was coming.”
A tough-looking but teary-eyed Nick Doria — who spread a Ford flag across his chest with the words “RIP Falcon” — walked outside the factory perimeter to brave the media scrum that was obliged to watch from the footpath, 100 metres away from the factory gates.
He installed the dashboard on the last Falcon.
The 22-year Ford veteran says his co-workers were “like family”, his eyes glassing up as he said, “long live Ford”.
“There’s a lot that are going to struggle (for jobs). They can’t read or write or apply themselves on computers, and that’s where they’re going to struggle,” he said.
An outreach centre opens next to the Ford factory on Monday, but the company has been hosting job fairs, career courses and literacy classes for the past three years.
Michael Jong, originally from East Timor, said he was “proud” to work for Ford. Having worked for Ford for 12 years he has a six-month contract to help with decommissioning the factory in Geelong. But after that: “I don’t know. I’m worried.”
Son, 45, from Vietnam, has been working for Ford for 13 years. He has a wife and four children — and no job to go to. “I tried to find, but it’s very hard.”
Sash Razmovski, said the Broadmeadows factories brought a lot f cultures together. “At one stage we had 150 cultures in there. It was great place to work. Great mates. Sadly we have to move on.”
Sad day today with Ford producing its last car in Australia after nearly 100 years. Tough day for many workers and their families
— Bill Shorten (@billshortenmp) October 6, 2016
A man who gave his name as Jackie, a Ford worker for 18 years, said: “I’m sad for (the) whole Australian industry. We lost the car industry.”
Ford boss Graeme Whickman said building the Falcon for the past five decades gave the company the ability to export engineering skills.
It will keep 1100 designers and engineers — including 160 former factory workers — to work on future models. But they’ll be built overseas.
When asked by News Corp Australia if there was anything the government could have done to save the car industry, and if Australia will ever manufacture cars again, Mr Whickman said: “It’s an industry decision”, before deferring to comments about Ford’s design and engineering workforce in Australia.
The sign outside the factory quickly changed to “Asia Pacific Product Development Centre” as Ford fans gathered outside the head office to show their support.
There was a lot of support from the local community as cars and trucks honked horns as they drove past the factory gate while workers prepared to leave for the last time.
The Australian Manufacturing Workers Union said a lot of the workers will struggle to find new jobs.
“These job losses couldn’t come at a worse time for these workers, many of whom will struggle to find work,” said Dave Smith, the AMWU National Vehicle Division Secretary.
Today we mark an end to 91 years of manufacturing in Australia. Watch as we celebrate our history and give you a glimpse of the future. pic.twitter.com/Zz1CaRWp5s
— Ford Australia (@FordAustralia) October 6, 2016
The closure of the auto industry is set to hit outer-suburban and regional economies the hardest with unemployment set to increase in Melbourne’s northern suburbs, Geelong, and areas around Elizabeth in the Adelaide suburbs.
“The decision taken by the Ford head office in the US is going to take a wrecking ball to these communities. The foundation of these suburbs and the families that live in them have been high-skilled, blue-collar jobs. There are simply not enough new jobs to absorb job losses at this scale,” Mr Smith said.
The AMWU says research conducted in 2008, following the closure of the Mitsubishi plant in Adelaide, showed that only one-third of workers went on to permanent work six months after the closure. The remainder found themselves unemployed, under-employed, or forced into retirement.
“Today, we are going to send decades of combined experience and skills into the abyss. It’s bad for workers and their families, but it’s also terrible for the Australian economy,” said Mr Smith.
Ford Australia boss Graeme Whickman issued a statement earlier in the day before he addressed the waiting media outside the factory.
“Today is an emotional day for all of us at Ford. We are saying goodbye to some of our proud and committed manufacturing employees and marking an end to 91 years of manufacturing in Australia,” Whickman said.
“But, as the country’s largest automotive investor and soon employer, we have been able to transfer many employees from our plants to our design, engineering and testing facilities across Victoria.”
The statement continued: “We also appreciate the partnership and assistance provided by our unions and the federal and state governments as we have delivered retraining and other assistance programs for our team members.”
Holden will also end production of its Cruze small car today, but the Elizabeth production line on the outskirts of Adelaide will continue to make the Commodore for another year.
Toyota will be last to turn out the lights on the Australian car industry, when the Camry factory in Altona shuts in late 2017.
THE LAST FORD FALCON
Photos of the last blue Falcon sedan have appeared on social media as Ford’s ends manufacturing in Australia after 91 years.
The very last car, a blue Falcon XR6 sedan, will be kept by Ford as a museum piece, alongside the last Territory SUV and last Falcon ute. The last customer cars will be auctioned for charity, which will pay for the establishment of robotics programs in schools in Geelong and Broadmeadows.
AMWU representatives outside the factory told media the last few cars are being “raffled as we speak” and workers are being photographed with the last three cars made (Falcon sedan, Falcon ute and Territory SUV).
Four brand new Falcon XR6 sedans are being raffled in a lucky draw for staff in Broadmeadows. And another four are being raffled in Geelong.
In the end, Australians will have bought more than 3.8 million Falcons over the past 56 years.
From 1925 to today, Ford Australia built more than 5.9 million vehicles and more than 3.8 million Falcons since 1960. The Broadmeadows site built 4,356,628 vehicles of all shapes and sizes.
Ford has been manufacturing in Australia since 1925, starting in Geelong. The Broadmeadows factory opened in 1959 and Falcon production commenced in 1960.
HOW MUCH INDUSTRY NEEDED TO KEEP FACTORIES OPEN
Meanwhile, a special investigation by News Corp Australia has uncovered the true extent of assistance required to keep the three remaining factories at Ford, Holden and Toyota operational.
When the Federal Government introduced the Green Car Innovation Fund in the wake of the Global Financial Crisis, the $500 million package was meant to help the industry make it to at least the year 2020.
Holden received $179 million ($149 million from the Federal Government and $30 million from the SA Government) to build the Cruze small car, while Ford received $42 million to go towards developing the four-cylinder Falcon, diesel Territory and a new LPG system.
Toyota received $35 million to go towards local production of the Camry Hybrid.
However, the taxpayer cash still was not enough to guarantee the industry would survive.
Confidential figures obtained by News Corp Australia reveal that, in addition to $7000 for every four-cylinder Falcon sold — up to 20 per cent of the purchase price — taxpayers spent $1400 on every locally-made Holden Cruze, $980 on each LPG Ford, and $875 on every Camry hybrid built to date.
Taxpayers got better value from the Ford Territory diesel, contributing $305 to each one built since 2011, because it sold in much greater numbers.
“It’s not uncommon around the world to have governments work in partnership with auto manufacturers, so it’s not specific to Australia,” said Ford Australia boss Graeme Whickman.
“These programs resulted in a heavy level of investment in combined money (from Ford). And we will have the biggest automotive workforce past 2017. Without the investment in Falcon and Territory we wouldn’t have the legacy of our Australian product development centre.”
The four-cylinder Falcon — called the “Ecoboost” -- was an embarrassing sales flop for Ford, proving fuel economy was not the only reason buyers were staying away from the Falcon in droves.
Ford forecast 10,000 sales over five years when the four-cylinder Falcon was introduced in 2012 — one year before the shutdown announcement — but in the end it only 2000 were built.
Ford had much more success selling V8 cars — demand doubled since the shutdown announcement three years ago.
Ford Australia will continue to employ 1100 designers and engineers — including 160 production line workers — but they will be developing cars built overseas.
Driving your dollar further: taxpayer funds per car sold since 2011
Ford Falcon four-cylinder: $7000
Ford Falcon LPG: $980
Ford Territory diesel: $305
Holden Cruze: $1418
Toyota Camry Hybrid: $875
Twitter: @JoshuaDowling
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