Ford to End an Operation Running Since 1925
High costs prompt it to leave Australia
By Matt Cantor, Newser User
Posted May 23, 2013 3:29 AM CDT
In this July 24, 2011 file photo, the Ford logo is displayed at an auto dealership.   (AP Photo/Seth Perlman, File)

(Newser) – Starting in October 2016, Ford will no longer produce vehicles in Australia, the company says. "Our costs are double that of Europe and nearly four times Ford in Asia," says Ford Australia CEO Bob Graziano. Facing struggling sales and citing high wages, the firm will close its two plants in Victoria state, Reuters reports. The move will cut 1,200 jobs, the Wall Street Journal adds, noting that the company has made cars in the country since 1925. Last month, a strong Australian dollar pushed General Motors' Aussie operation to announce it would slash 500 jobs.

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Showing 3 of 28 comments
woodyTX
May 23, 2013 4:24 PM CDT
Interestingly if you go the original and very brief Reuters story from the link in the story above, the quote is "The car manufacturer has struggled with sliding sales, high costs and a strong Australian dollar." There is no mention of high wages there. Is Newser baiting the righties in the Newser blogosphere ? If so it's certainly working. See posts below. High costs can involve raw materials such as steel, high insurance costs, lower output due to poor sale which results in high overhead per car produced, high transportation costs etc etc. It may just be that the Australian market is best served by Asian economies of production scale and will import most of its cars. If that is the law of the economic jungle...so be it.
A1e8a
May 23, 2013 2:07 PM CDT
republicons STEAL from the poor and middle class to give to their RICH, FAT-CAT cronies. BOOT 'EM ALL OUT of the country!
No-Left-Turn
May 23, 2013 1:32 PM CDT
A neighbor's son lives in Australia. He said the cost of living there has become insane. What is happening at Ford is just more evidence. http://www.smh.com.au/data-point/rising-price-of-living-in-australia-20130426-2ik16.html