This week’s news that Ford Motor Company will shutter its manufacturing operations in Australia came as a quite the shock to the automotive realm. The development, however, sheds light on a sobering reality: that manufacturing in Australia is extremely tough, even for the most committed of automakers.
Ford’s move also raised questions about whether a similar fate awaits GM Holden and its manufacturing concern in Australia. Hoping to curb any and all speculation, Holden released the following statement:
It reads as follows:
Despite Ford’s announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given Ford’s relatively low production volumes.
Holden set out a 10-year manufacturing plan that was agreed with the Australian Government in 2012, based on the economic and market conditions at that time. That plan would see Holden invest a billion dollars in this country and secure production of two all-new global vehicles out to 2022.
The industry needs swift action to make Australia’s automotive policy settings clear, consistent and globally competitive as quickly as possible.
Holden is working closely with the Australian Government, Federal Coalition and the State Governments to ensure the viability of the industry in the face of the historically significant economic challenges facing the country.