Automaker Ford Cuts More Than 400 Jobs in Victoria, Australia
Victoria is facing more job cuts in the following months as automaker Ford Motors Co. on Tuesday announced it will slash more than 440 jobs at its Geelong and Broadmeadows production plants.
As a consequence, vehicle production in both plants during the next three-and-a-half months will greatly drop from 209 per day to 148 per day, Bob Graziano, Ford Australia president and chief executive, noting the production cut is geared to cater with the present realities of the market's demand. The company's sales volume of large cars has dropped 25 per cent compared to the same period in 2011, The Herald Sun reported.
"We understand that, unfortunately, the impact on our employees will be significant, but implementing this structural change is essential to ensure the longer-term health of the business, which is important for our employees, our suppliers and the communities in which we operate," Mr Graziano said in a statement.
The initial plan, Mr Graziano said, is to offer voluntary redundancies to the workers situated at the manufacturing parts of the business. But the company may eventually be forced to sack the remaining workers if only to meet the required manpower slash.
"It's a sad day for us," he said in The Herald Sun. "But we also have to manage our business to be as efficient as possible going forward."
Workers who will avail of the redundancy have been assured of a competitive redundancy package, including training and career counseling.
"We will work closely with them and our union partners to help our employees make the transition successfully," the Ford Australia president and chief executive said.
At the same time, Ford Australia, in response to customer demand for cleaner and efficient fuel-burning units, is working to improve its very fleet that's produced and sold in Australia.
"Customer preferences are continuing to move rapidly towards more fuel-efficient vehicles, which is why we have recently introduced Ford's global EcoBoost technology to Falcon," Mr Graziano said.
"We have also recently announced a further $103 million investment across our locally produced vehicle lines, which will come to market in 2014, which demonstrates our on-going support for the large car segment in Australia.
Such pronouncements affirm the company's commitment to remain in operation in Australia. Experts and industry observers are keen that Ford Australia might already close shop in 2016, especially after receiving in January from the state and federal governments a multimillion dollar bailout to secure its presence in Australia until the next four years.
"We are committed to the Ford brand and continuing to produce vehicles in Australia,'' Mr Graziano said.
In 2011, Ford Motor Co. had already 240 jobs at its Australian operations.