Ford To Close It Doors

[Mikhael]

This is not good :shock:

http://www.goauto.com.au/mellor/mellor.nsf/story2/C114B7DD503506BDCA2572C1001251B4

[TommyVTss]

better go and get me a falcon they will be a collectors item soon!

[chrism697]

better go and get me a falcon they will be a collectors item soon!
i think that might be iver reacting a little haha
did you read the article?

[spank]

i have a friend who is in the auto industry, suppling interior parts was talking about this when ajax first was in strife, the problem is that both ford and gm crunch the suppliers that hard on price for the suppliers (his company also) to get the business and when they get into a contract to supply parts at a fixed price but the costs to produce the part go up, they lose money that they cant sustain and eventually close the doors, ford and gm have no one to blame but themselves, doesnt help their employees tho

[SV8er]

Far out , not good news at all

Didn't hear anything on the news tonight but then i did miss 1/2 of it

[Mikhael]

better go and get me a falcon they will be a collectors item soon!

collector's item or antique ?

:lmao:


Seriously though, I really feel bad for the once mighty Ford, they can't take a trick at the moment ..........

[EfiJy]

i have a friend who is in the auto industry, suppling interior parts was talking about this when ajax first was in strife, the problem is that both ford and gm crunch the suppliers that hard on price for the suppliers (his company also) to get the business and when they get into a contract to supply parts at a fixed price but the costs to produce the part go up, they lose money that they cant sustain and eventually close the doors, ford and gm have no one to blame but themselves, doesnt help their employees tho

dats true. toyota pay more for the same parts that ford and holden bye

holden dumped pilkinton glass then came back but toyota stayed with them all along

[mustanger]

i have a friend who is in the auto industry, suppling interior parts was talking about this when ajax first was in strife, the problem is that both ford and gm crunch the suppliers that hard on price for the suppliers (his company also) to get the business and when they get into a contract to supply parts at a fixed price but the costs to produce the part go up, they lose money that they cant sustain and eventually close the doors, ford and gm have no one to blame but themselves, doesnt help their employees tho

You are dead right there Spank. The profit margins are so low that there is no room to move. These suppliers just need a small increase in interest rates or materials and they are out the the door.:teach:

[Aspiring Youth]

My missus parents have ordered a Territory, does this mean they should expect a lengthy delay on the car? If so they may buy a holden, which was their second choice.

[Mikhael]

My missus parents have ordered a Territory, does this mean they should expect a lengthy delay on the car? If so they may buy a holden, which was their second choice.

Sounds like it could be delayed, indefinitely.

Tell 'em to go the Holden.

Which one ?

Captiva ?

[Aspiring Youth]

Yeah Captiva. Its a nice car that captiva. Ford have already screwed them around. They were gonna get an 06 build, but than they started giving them crap about there being none left (after they placed their order) or saying they can get one but for $3500 extra. Or buy an 07 build for like $5000 extra. They picked the 07, but now a Captiva is looking good.

[Curtis-R]

Far out , not good news at all

Didn't hear anything on the news tonight but then i did miss 1/2 of it

You would think something like this would make the news hey..? Be interesting to see what happens..

[Mikhael]

Yeah Captiva. Its a nice car that captiva. Ford have already screwed them around. They were gonna get an 06 build, but than they started giving them crap about there being none left (after they placed their order) or saying they can get one but for $3500 extra. Or buy an 07 build for like $5000 extra. They picked the 07, but now a Captiva is looking good.

The oldest trick in the book.

Get 'em in on a cheap price and then tell them there is none left in stock and up-sell them a more expensive model. Dodgy.

If it was me, I'd tell them where to stick it and go elsewhere

[Rad Kane]

Yes, it certainly is not a healthy environment to loose such a strong competitor.

After all, we as consumers will loose in the long run.

No competition, there is no pressure to provide competitive and affordable product.

And really, what has Toyota to offer in affordable V8 engine cars?

[Aspiring Youth]

The oldest trick in the book.

Get 'em in on a cheap price and then tell them there is none left in stock and up-sell them a more expensive model. Dodgy.

If it was me, I'd tell them where to stick it and go elsewhere

Thats exactly what i told them to do, but they kept on insisting to me that the dealer said there was none ANYWHERE in australia at the price they had originally told them due to them being too far away which meant they had to pay delivery and than it had a few extra bits as well. I told them but what can you do. They beleived the dealer. Oh well, i'll be interested to see what happens now. I'll make sure they ring the dealer tomorrow to find out what is happening.

[Mikhael]

Thats exactly what i told them to do, but they kept on insisting to me that the dealer said there was none ANYWHERE in australia at the price they had originally told them due to them being too far away which meant they had to pay delivery and than it had a few extra bits as well. I told them but what can you do. They beleived the dealer. Oh well, i'll be interested to see what happens now. I'll make sure they ring the dealer tomorrow to find out what is happening.

Yep, ring the dealer first thing in the morning and see how long the delay will be, and don't take no bullshiit from them, if they can't deliver, go elsewhere.
Sounds like they have already been a pain to deal with.

[LTH-00L]

Crap guys.... This is really bad!

Aus needs Holden & Ford!

[Aspiring Youth]

Crap guys.... This is really bad!

Aus needs Holden


In best Peter Griffin voice "Yeahhhh" :D

Seriously though, This does suck as lots will lose their jobs, and what about the future of the V8 supercars? Where will Ford come into it? Will we see American built Fords racing?

[Marco]

Ah, guys...might want to actually read the article. Ford is closing for a couple of days because one of its suppliers is in financial trouble and can't supply parts. There is nothing about the company shutting its doors for good or going out of business, so let's all go back to our regularly scheduled viewing. Just the perils of the just in time production system, move along, nothing to see here.

[LTH-00L]

Ah, guys...might want to actually read the article. Ford is closing for a couple of days because one of its suppliers is in financial trouble and can't supply parts. There is nothing about the company shutting its doors for good or going out of business, so let's all go back to our regularly scheduled viewing. Just the perils of the just in time production system, move along, nothing to see here.

Well that's not what the first paragraph reads...

"FORD Australia stopped building V8 Falcons on Monday of this week and is expected to cease Falcon and Territory production completely and indefinitely from tomorrow following the failure of a meeting to shore up a cash-strapped Victoria auto parts company yesterday."

[spank]

Ah, guys...might want to actually read the article. Ford is closing for a couple of days because one of its suppliers is in financial trouble and can't supply parts. There is nothing about the company shutting its doors for good or going out of business, so let's all go back to our regularly scheduled viewing. Just the perils of the just in time production system, move along, nothing to see here.

until the next poor supplier who cant make the parts for the price ford set and have to close the doors

[Mungrel]

collector's item or antique ?

Naah antiques are valuable :thumbsup:

Still not good for them to close their doors, even if only for a few days.
Clearly something isn't going well somewhere in the industry, whether it be their suppliers or otherwise.
Hope all returns to normal soon.

[Mikhael]

Ah, guys...might want to actually read the article. Ford is closing for a couple of days because one of its suppliers is in financial trouble and can't supply parts. There is nothing about the company shutting its doors for good or going out of business, so let's all go back to our regularly scheduled viewing. Just the perils of the just in time production system, move along, nothing to see here.

Marco, no-one has said Ford is shutting down permanently.

However, you seem pretty confident it will only be for a couple of days heh ?

I hope for Ford's sake you are right.............

[Carby650]

i have a friend who is in the auto industry, suppling interior parts was talking about this when ajax first was in strife, the problem is that both ford and gm crunch the suppliers that hard on price for the suppliers (his company also) to get the business and when they get into a contract to supply parts at a fixed price but the costs to produce the part go up, they lose money that they cant sustain and eventually close the doors, ford and gm have no one to blame but themselves, doesnt help their employees tho

Tend to disagree a tad Spank.
Nobody forces them to sell there goods for that price. I look after a lot of manufacturing clients and I know of some who have not taken on jobs if they can't make a profit from them and others who have sorced their product from elsewhere cheaper and essentially become wholesalers insted. whilst this is not good from a employee point of view the company stays in business which is important.

[LTH-00L]

Tend to disagree a tad Spank.
Nobody forces them to sell there goods for that price. I look after a lot of manufacturing clients and I know of some who have not taken on jobs if they can't make a profit from them and others who have sorced their product from elsewhere cheaper and essentially become wholesalers insted. whilst this is not good from a employee point of view the company stays in business which is important.

I'll agree with that! Don't take a job if you feel it's gonna end up costing you your livelihood!

[spank]

with the suppliers i know the contract come up for renewal and gm/ford says we will renew but at xxx price or we go to some one else, from what i understand its fairly cut throat business tacticts, so unless the supplier has someone else to sell the bits to they either supply the parts at the risk of shutting down if costs rise or they shut the doors now, but i agree no one FORCES them to renew and to a degree some of the suppliers cut their own throat by quoating prices that are so marginal to get the business

[Marco]

Marco, no-one has said Ford is shutting down permanently.

However, you seem pretty confident it will only be for a couple of days heh ?

I hope for Ford's sake you are right.............

Some of the comments here have been along the lines of "Falcons will become collectors items" and "what will happen to V8 supercars" and all. I'm just saying it's nowhere near as dire as that.

Frankly, Ford probably doesn't mind this too much as they aren't selling many cars anyway, so it's a good way to clear the backlog of cars that is sitting in dealer yards and holding yards around the country.

I'm very confident that either someone will put some money in and get the supplier going again, or that Ford will find an alternative supplier in China quite quickly and get the whole show on the road again very soon, a la the Ajax situation a few months back.

[Carby650]

with the suppliers i know the contract come up for renewal and gm/ford says we will renew but at xxx price or we go to some one else, from what i understand its fairly cut throat business tacticts, so unless the supplier has someone else to sell the bits to they either supply the parts at the risk of shutting down if costs rise or they shut the doors now, but i agree no one FORCES them to renew and to a degree some of the suppliers cut their own throat by quoating prices that are so marginal to get the business

yep dead right.
Manufacturing in Australia is an industry which is in decline. We need to accept that. Problem is the we can only produce 1 Widgit at say $1.50 yet it can be imported from (insert country of choice) for $1.10.
Now whilst this may cost jobs in manufacturing it does create jobs in other areas as the company does stay in business.

[Aspiring Youth]

Well yeah my comment was probably a bit over the top but isnt the orion meant to be the last RWD Ford produced in Australia or something? If it is (i'm sure i read that somewhere) Well that question remains.

[Carby650]

Well yeah my comment was probably a bit over the top but isnt the orion meant to be the last RWD Ford produced in Australia or something? If it is (i'm sure i read that somewhere) Well that question remains.

Mate the article is just saying that the company who supplies the "widget" to Ford has gone under. Ford now just needs to get that "widget" from somebody else. This may take a little time to arrange and as such places some pressure on production. Smart companys often have more then one supplier to ensure continuality of production albeit at a slower rate but Ford may not have that option in this case.

[Mikhael]

Frankly, Ford probably doesn't mind this too much as they aren't selling many cars anyway, so it's a good way to clear the backlog of cars that is sitting in dealer yards and holding yards around the country.

I agree.

They probably don't mind, short term only.......

[Aspiring Youth]

Yeah i understand that article. But im sure i read in Wheels or Motor that it will be the last RWD built in Australia due to Ford restructuring their company or something.

[Carby650]

Yeah i understand that article. But im sure i read in Wheels or Motor that it will be the last RWD built in Australia due to Ford restructuring their company or something.

Just another doom and gloom article to sell more mags.

[Aspiring Youth]

Just another doom and gloom article to sell more mags.

LOL. So true, especially after the whole "No ute or wagon from Holden" story only to find out a week later there coming :nono:

Still, it DID make an interesting read.

[Mikhael]

LOL. So true, especially after the whole "No ute or wagon from Holden" story only to find out a week later there coming :nono:

Still, it DID make an interesting read.

I'm still laughing at that turkey who wrote it, what a goose:lmao:

Don't you also just love how the media keep on this "doom + gloom" for large cars. It's kinda getting a bit tired.

I mean especially when the VE sold nearly 6000 cars last month.

These turkey's need to support the Commodore and Falcon.

Talking it down only makes things worse. :vpo:

[SS Enforcer]

Tend to disagree a tad Spank.
Nobody forces them to sell there goods for that price. I look after a lot of manufacturing clients and I know of some who have not taken on jobs if they can't make a profit from them and others who have sorced their product from elsewhere cheaper and essentially become wholesalers insted. whilst this is not good from a employee point of view the company stays in business which is important.

Thats right they don't force them they just play the import card and force them to cut their margin. This company probably made a good profit selling to the auto industry in days gone by . I bet if they raised their prices 10% the car companies wouldn't pay and use a cheaper imported part instead. How much $$ are we talking about per car to make it viable for the manufacturer ? $10 - $50 I bet.

I guess they could cut their workers wages or import workers from China on contract. I mean really who gives a toss if the company stays in business when they just import the parts from o/seas. Another company could just as easily wholesale the parts direct from oseas and cut out the Aussie manufacturer / wholesaler then they could just race each other into bankruptcy.

cheers

[LOWKEY]

i heard of this a while ago from my mate who works at the proving ground. lots of interesting stories come from there

[Zero5]

Any word on the effect at Holden? Sounds like they may be effected also but the author couldn't get in touch with them to verify. I have an SS-V on the way very soon..... maybe....

[Caprice270]

i have a friend who is in the auto industry, suppling interior parts was talking about this when ajax first was in strife, the problem is that both ford and gm crunch the suppliers that hard on price for the suppliers (his company also) to get the business and when they get into a contract to supply parts at a fixed price but the costs to produce the part go up, they lose money that they cant sustain and eventually close the doors, ford and gm have no one to blame but themselves, doesnt help their employees tho

Its about time Ford started taking note of all the literature on corporate social responsibility and realised that looking after the profits of their suppliers will in the long term protect their profitability also. If they continue to use market power to destroy supplier margins this is what will keep happening.

If Holden and Ford decide the solution is to withdraw support of Australian suppliers in response to these supply disruptions and look to import components, the Government needs to withdraw grants to Ford and slash any remaining tariffs, because an industry that doesn't support Australian workers should not be supported by the taxes that Australian workers pay.

[vxssgurl]

Just another doom and gloom article to sell more mags.

Actually, no.

Ford US was in the grips of Chapter 11 bankruptcy protection last year and had to be bailed out.

When I was in Detroit last month, you can go through the Ford Rouge plant - where they make the F100 and F150 series... Ford's most popular 'pickup' in the US. Only problem is, production has to be shut for a good 2 - 3 days per week, and they now advertise that there is no guarantee that you will see actual MV production whilst on the tour.

So there is SERIOUS restructuring going on behind the scenes on an International scale.

[Venom XR]

Ford Aus is now looking at a potential export program, with left-hook Falcons replacing aging Crown Vics in the Middle East. Ford Aus could become the home of Ford global RWD architecture, much like GMH is for the GM world.

Lutz has put RWD on hold in the US, which might effect Holden, except it's more a political ploy with respect to CO2 and CAFE debates that are now raging. Holden will depend more on engineering RWD solutions for other markets than our own.

[LTH-00L]

Well yeah my comment was probably a bit over the top but isnt the orion meant to be the last RWD Ford produced in Australia or something? If it is (i'm sure i read that somewhere) Well that question remains.

This is 100% true! There was a full page article in wheels a couple months back where Ford confirmed that Orion would be the last Australian designed Falcon. So possibly future Falcons will be American designed and might be assembled here for the Aussie market, and there for the Yank market. Ford aren't clear on this yet.


Any word on the effect at Holden? Sounds like they may be effected also but the author couldn't get in touch with them to verify. I have an SS-V on the way very soon..... maybe....

Sky news reported that Toyota & GM have said there production is not threatened at the moment

[The_Senator]

You would think something like this would make the news hey..? Be interesting to see what happens..


I totally agree.. It find it rather amusing at what stuff makes the news and what misses out (on a rlevancy scale).

[SV346]

I just think that if Holden and Ford want to keep out of trouble they really have to start putting more dollars towards the companies who make their parts, sure the car prices may rise by a small amount, but people would be willing to pay because itd be relatively insignificant. Its disappointing to see articles like this because it highlights an ignorance somewhere in the industry that could ruin it.

[pagey]

Whre can I buy these widgets?

[Birky]

(Sorry don't have enough posts to post the link but the story is on news.com.au)

Ford to stand down thousands

FORD workers in Melbourne will be told not to bother coming to work on Monday if a dispute with a car-parts manufacturer is not resolved tomorrow, the company says.
As many as 4000 workers at the firm's Broadmeadows and Geelong plants will be stood down from close of business tomorrow after industrial and financial problems at parts manufacturer Coghlan and Russell Engineering, Ford spokeswoman Sinead McAlary said.

The news follows earlier union fears that workers would be ordered home as early as today, after 49 Coghlan and Russell Engineering staff were stood down without pay last Thursday.

“We are working as normal today and we will be working tomorrow,'' Ms McAlary said.

“For today and tomorrow, we have managed to reorganise production schedules for building cars that don't require as many Coghlan and Russell parts.

“However, from tomorrow we will start to run out of a significant number of car parts. If, by close of business tomorrow, the issue is not resolved, we will be telling workers not to bother coming in on Monday.''

Battle for entitlements
The 49 Coghlan and Russell workers are fighting for $1.85 million in entitlements after the firm entered administration on Wednesday of last week, the Australian Manufacturing Workers' Union (AMWU) said today.

AMWU acting Victorian secretary Steve Dargavel said the Federal Government was directly responsible for the plight of the workers and the thousands of others facing stand downs across the automotive industry.

“Poor industry policy is driving work offshore and then these workers cop it again when their factory goes belly-up with no money for their entitlements,'' he said.

Coghlan and Russell supplies about 40 different components to Australian car manufacturers, including engine mounts for Ford and catalytic converters for Holden.

Hotline opened
Ford would open a hotline for its workers to phone over the weekend for further advice if the stalemate had not been resolved, Ms McAlary said.

“If the issue is resolved over the weekend, a resumption in production will depend on how quickly Coghlan and Russell can get us the parts to get production lines moving again.

“We're hoping, of course, the situation will be resolved tomorrow - we're hopeful but not confident.''

[gottacalais]

what a load of cr#p!! i live about 3 kms from coghlan and russell and drive past it numerous times a day on my bus route and if ford closes down because of a VERY small company like that then there is something very wrong. surely they can get the parts manufactured somewhere else???? yes i feel sorry for the men and women of C&R picketing outside the yard everyday and being owed all that money but Ford, c'mon surely there is an alternative? if that's all it takes to shut down a huge company like Ford then i'll be a monkeys uncle!!!!! i can't see why these companies are in trouble every few months. either they are not charging ford enough for the parts or the owners are skimming too much in profits, there must be a better way to do business? if they charge Ford a bit more for the product,yes it adds to the price of a new vehicle but maybe do some cost cutting elsewhere like less comission for the dealers and the salesman as they are ONLY salesman and don't have to have a degree to sell a car so pay them an hourly rate (instead of only getting paid when they sell a car) and a smaller comission and include a company car as a bonus. i have seen some of the real estate these car dealers own and in my opinion they are getting far too much! just my thoughts anyway. cheers guys.

[Pilbara SSV]

I actually read in the article part of the problem is Ford actually overpaid C&R by about 1.5million and they have spent that trying to stay liquid and because this has failed they have closed up. Maybe Ford was indirectly trying to help out this small company but someone has let on to the Unions about the overpayment and now the unions want to know why all the Super that was owed (about 1.8million) wasn't paid into there funds when the extra 1.5mill was received instead of trying to prop up an obviously struggling concern. I think there might be more to this than meets the eye. Imagine how much tax ford would save if they over pay their bills in exchange for cheaper parts contracts. Tell me this doesn't happen?
I feel sorry for the 4049 workers, all the best to them. Hopefully all will be sorted out.

[Tony66]

I feel for the people who work at Ford and their families. No one wants to lose work or their jobs.

But that said, I am confused, isn't this a Holden forum?

Why are we crying about Ford? (The Company)

[chrism697]

fors standing down employees doesnt mean they are making them redundant and closing their doors.....it simply means, as they need to stop production they cant have thousands of people sitting on their ass around a dead production line, so they will send them home and make them take annual leave etc, until they find a different supplier to supply the parts they have run out of,

FORD ARE NOT CLOSING THEIR DOORS FOR GOOD

[bsbozzy]

As much as i am a holden man, i would hate to see ford close its doors

Here is an update:

http://www.abc.net.au/news/newsitems/200704/s1902076.htm

Ford strikes deal to halt shutdown of car parts supplier
Ford hopes it has saved its two Victorian plants from an impending shutdown, after striking a late night agreement with the administrators of a failed car parts supplier.

Coghlan-Russell Engineering has been placed in administration, owing its workers $1.8 million in pay and entitlements.

The company is Ford's main supplier and its failure threatened to shutdown the Geelong and Broadmeadows plants from next week.

But a Ford spokeswoman says the administrators last night accepted a deal which would see Ford and Holden-supplier Delphi covering Coghlan-Russell's operating costs for the next two months.



But she says the deal does not cover the workers' entitlements and the Coghlan-Russell staff will have the final say on whether to accept the deal.

The administrators are presenting it to them this morning

[chrism697]

Has anybody realised there is not one article saying Ford is stopping operations in australia.....they are just saying they will have to cease production until a solution is found


Ford arent stopping operations long term, this is a temporary thing!!!

[M///POWER]

Has anybody realised there is not one article saying Ford is stopping operations in australia.....they are just saying they will have to cease production until a solution is found


Ford arent stopping operations long term, this is a temporary thing!!!

LOL yeah i think people should read whole article again.