Global trends to hit out jobs for a straight six

By Geelong Story Updates
FORD Australia president Tom Gorman this week confirmed the news nobody in Geelong wanted to hear – that 600 jobs would go in 2010 when the company shuts its local engine plant.
It was a pragmatic economic decision for Ford to discontinue its Australianbuilt straightsix engine for a US V6.
On Ford’s behalf, the economics were simple.
In the US, Ford will build about one million engines a year in 2010 compared to Geelong’s 70,000.
Ford Australia couldn’t justify maintaining the “orphan” straightsix in such small numbers, Mr Gorman explained.
But that doesn’t help 600 workers facing the prospect of being without jobs when the engine plant shuts in 2010.
Mr Gorman left a glimmer of hope for some.
He said retraining would be offered for staff, while some workers might find work as the company strived to rebuild capacity at its Broadmeadows assembly plant.
And Ford would run a feasibility study on assembling or manufacturing the V6 in Geelong with “an open mind”, although the numbers were against it already, Mr Gorman said.
State and federal ministers announced that funding to create new jobs would also pour into the city.
Ford’s decision shows how much global trends impact Australia’s automotive industry.
Declining largecar sales have hurt Ford on both sides of the Pacific.
In the US, Ford is working through a massive restructure plan.
In Australia, Ford’s sales of local sixcylinder cars continues to drop.
Ford had already cut production and slashed its workforce at Geelong and Broadmeadows, offering attractive redundancy packages.
The rising price of petrol has turned more motorists away from large cars toward smaller, imported models that go easier on the juice.
But changing emissions standards hastened the decision.
In 2011, the Australian favourite inlinesix won’t meet new emissions rules.
Ford was at a fork in the road.
The hard road was to develop a new engine and retain local jobs, the easy one to import a proven product manufactured en masse at a larger US factory.
But Mr Gorman stressed the decision wouldn’t impact on Ford’s other manufacturing activities in the region.
He said work would continue on a new research and development centre where the company would develop a new global commercial vehicle, as would introduction of new testing facilities at Lara.
And fans of Australian cars would also be happy to hear the change to a US powertrain doesn’t mean an end to rearwheeldrive cars.
Mr Gorman said the Duratec V6 would be reconfigured to operate in rearwheeldrive vehicles.