Locally Built Ford Focus Now In Doubt......

[Hamico]

Ford cannot take a trick at the moment.........between Falcon sales tanking, nervouness over the Orion, and now this.........

http://www.caradvice.com.au/10059/ford-could-lose-focus-over-20m/


Ford could lose Focus over $20M
6 Feb, 2008

Labor is planning to withdraw some $20 million of a grant promised to Ford Australia by the former Howard government which could now jeopardise plans to build an new four-cylinder engine line (for the coming Focus range) at its Broadmeadows plant.

The grant of some $52.5 million for special assistance was announced in May 2006, and which Ford has already received about $32.5 million. But the remaining $20 million was not due to be paid until late 2009.

The money was intended to help start production on the new Falcon project (known as ‘E8′ - the V6 powered 2010 model) but Ford sought to alter the agreement so the money could be spent on developing the four-cylinder Focus.

Production of the Focus, Ford’s first locally-made small car in a decade, is due to start at Broadmeadows in 2011, creating 300 jobs, but the new contract between Ford and the Government was not formally amended before the November federal election, creating a loop-hole for the Rudd Government to now withdraw the funding.

Ford now has legal grounds to sue (breach of faith) which has been backed by the Australian Government Solicitor.

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[Lionking]

Um..this is just beat up. Focus WILL be built. Labor WILL pay the money. End of story.

[Hamico]

Um..this is just beat up. Focus WILL be built. Labor WILL pay the money. End of story.


You seems like you knows something da rest of the country doesn't ?

Why didn't the Rudd Government throw money at Mitsubishi to stop them from closing then ?

I seriously think the Governments have had enough of wasting tax payers money year after year propping up the local car industry.
It is now time they stand on their own two feet and either sink or swim.........

It wasn't as if they weren't warned years ago, that's why Holden and Toyota started looking to exports to sustain themselves in this country.

Harsh but true.

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[Lionking]

I agree that the Government shouldn't help the car companies. let's face it, the car companies are private companies, just like a corner store is a private company/business. I don't see the government giving corner store owners handouts to stay afloat.

HOWEVER, there is absolutely no quote in that story from a government official saying that they won't pay Ford the money. The deal was done previously and until a government official says that it is not the case...it is just a beat up from a lowly car website.

[Carby]

I think it is quite OK for Australia to prop up the local industry - better give it to them in wages than Dole payments and the spinoff is all the local industry that also benefit from having a large manufacturer about

Also Australia has some hell bent ideaology of being the free trade masters of the world, we will continue to drop our tariffs and the imports will keep on flooding in - this would not be so bad but the rest of the world is laughing at us, esp. EU, US and Japan.


Mitsu today, Ford in a few years and then GMH - they will all close their manufacturing operations and become importers - and yes there will still be those who say this will be best for us!

[tirone]

Why didn't the Rudd Government throw money at Mitsubishi to stop them from closing then ?
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Theres no point pumping money into a company that cant sell cars.

[Road Warrior]

You seems like you knows something da rest of the country doesn't ?

Why didn't the Rudd Government throw money at Mitsubishi to stop them from closing then ?

I seriously think the Governments have had enough of wasting tax payers money year after year propping up the local car industry.
It is now time they stand on their own two feet and either sink or swim.........

It wasn't as if they weren't warned years ago, that's why Holden and Toyota started looking to exports to sustain themselves in this country.

Harsh but true.

.

Its a press beatup designed to manufacture controversy. As already stated there is nothing in there from the government or a government official that would give any credence to the claims made in the artice.

Ford (and Holden for that matter) are different to Mitsubishi as they have been reinvesting in Australia's workforce and industry, building new engine plants (Holden HFV6 plant) and new engineering and design facilities (Ford in Geelong) as well as winning new projects for doing R&D for cars to be manufactured overseas (Holden with the Buick Royaum and Ford with the T6 project and Fiesta).

Mitsubishi on the other hand has had no substantial reinvestment in Australia, outside of the new car, the 380. Head office obviously controls the purse strings and they must have made the decision years ago that they would not commit to the local industry here, given the lack of investment.

[vxleather]

Sink or Swim......

Latest time I checked a ford would sink if asked to swim by it self...

[XLR8 V8]

Why didn't the Rudd Government throw money at Mitsubishi to stop them from closing then ?


Theres no point pumping money into a company that cant sell cars.


They'd prefer to give them $40M and still let it close :eek:

http://www.news.com.au/business/story/0,23636,23165004-31037,00.html

[Tyre biter]

Theres no point pumping money into a company that cant sell cars.

Spot on Tirone, I think the 'management speak' for this approach is "an escalating commitment to a failed course of action".

History is littered with such examples of generals, governments and corporations ploughing more money, resources and staff into something in an attempt to 'save it' despite it being very obvious that the result will not alter. Contemprary examples might include Iraq and fore sure MMAL as a manufacturer in this country.

Cheers,

[V-Car]

Yes, its just a beat up.
It doesnt say anything about Focus not being built here, all it says is that the engine plant to build the 4cyl engine is in doubt, not the car.
It scare mongering by libs to score points because Labor has said it will scale back some of the phoney promises made by the libs to win votes prior to the election.


They'd prefer to give them $40M and still let it close :eek:

http://www.news.com.au/business/story/0,23636,23165004-31037,00.html

Not quite true.
In the story it says the money isnt going to Mitsubishi, its going to the workers and also to strengthen SA's manufacturing base, read Holden and suppliers.


Senator Carr said the package would include up to $10 million for intensive assistance to workers and a $40 million fund to strengthen South Australia's manufacturing base.

But Mitsubishi will repay the grant it received in 2002.


Mr McEniry said Mitsubishi would repay a $35 million SA government grant received at the start of the 380's development program in 2002

http://www.goauto.com.au/mellor/mellor.nsf/story2/0919E91E45E9F431CA2573E600275795

PS: Its a shame Ansett employee's didnt get the same assistance!

[Falcon Freak]

Ford was given over $20million in 2005 to ensure the long term viability of the Geelong engine plant. As the septics in the US head office have decide to kill local production of the I6 engine in 2010, Ford SHOULD return all of this money to the taxpayers!!!:flipoff:

FF