The telltale signs have already been there as early as 2012. It was just a matter of when will Ford Australia finally collect its guts to formally announce the closure of its manufacturing plants in Australia. That time came on Thursday as Ford Australia finally confirmed it is closing down and letting go 1200 jobs in the process.

At a press conference on Tuesday morning, Bob Graziano, Ford Australia company president and CEO, dropped the inevitable bomb.

"As you know the Australian manufacturing industry has been facing challenging conditions," Mr Graziano said.

"In light of that we will cease our manufacturing in October 2016," he said.

"Approximately 1200 jobs in Broadmeadows and Geelong will become redundant.

In July 2012, IBT Australia reported that experts from the car and automotive sectors expect Ford Australia to shutdown four years from then.

"I don't expect them to be here after 2016 when the Euro 5 standards kick in," PPB Advisory partner Stephen Longley, a receiver for collapsed automotive supplier companies, had forecast then.

Read: UPDATE: Ford Australia To Close Shop in 2016

"The decision was not made lightly ... we understand the very real impact of this decision," Mr Graziano said, noting the Falcon name-plate would be "retired" once production ceases.

"It just doesn't make sense for us [to manufacture here] longer term."

Ford Australia will close its plants at Broadmeadows in Melbourne's north and Geelong, west of Melbourne, effective October 2016. A total of 650 and 510 jobs respectively will be lost. The company has a total of 2700 manpower workforce.

Mr Graziano said all 1200 employees will receive the necessary entitlements.

The company will manufacture its Falcon and Territory models in Victoria until 2016, Mr Graziano said, including new versions of each car from next year.

Shocked and Devastated

Leigh Diehm, Australian Manufacturing Workers Union assistant state secretary, said the workers at both Ford plants were shocked and devastated by the news.

"There are hundreds of thousands of Australians employed by these companies. We're really concerned about what the flow-on effects are," Mr Diehm said.

"The announcement today means that there'll be 650 jobs lost from Ford in Broadmeadows... will gut this community," Victoria Labor MP Frank Maguire told ABC News.

"This will have a devastating effect on the families and on the people who have dedicated their lives and their careers to, and their hard work, their sweat, their muscle to actually help deliver these cars."

Opposition Leader Tony Abbott said government should "do everything we reasonably can to make it easier not harder for manufacturing to go ahead in this country."

To recall, the federal government put $34 million towards Ford's $103 million production upgrade in January 2012. The Victorian government likewise put in an unspecified amount.

But Mr Graziano said the financial injection had been accounted and that Ford Australia had fulfilled its obligations to the government.

"We announced a freshening in 2014 of both the Falcon and Territory ... that was the last grant we received from the government," he said.

"That is going forward. We will launch those vehicles and they will be the best Falcon and Territory to date."

Hopeful and Resilient

Even Geelong's mayor Keith Fagg can't seem to come to terms how this devastating news would affect his hometown.

"This is a very sad day for Geelong and we do feel it deeply for these Ford workers there and we need to work," he said.

But Mr Fagg remained hopeful that the displaced workers will rise above the challenge.

"Geelong has a long history of making things and we don't want to lose those skills. We need to look at new forms of manufacturing, smarter forms of manufacturing. There is a lot of research going on at Deakin around carbon fiber."

"I don't pretend that this is going to be an easy time for Geelong but we need to work constructively for the future."

Beyond 2016

Ford would still maintain a presence, albeit small, in Australia beyond 2016.

"Ford will remain a significant employer in Australia, with more than 1500 team members, as will our network of more than 200 dealers around the country," Mr Graziano said.