He’s the boss: Robert Graziano addresses the business breakfast on Tuesday morning.
By John Van Klaveren
AUSTRALIA has one of the world’s lowest levels of government investment in the automotive industry, according to Ford boss Robert Graziano.
The president and chief executive officer of Ford Australia used a business breakfast in Geelong this week to call for increased government assistance.
Mr Graziano wanted more investment and intervention in the face of increasing “competitive intensity”.
But he refused to be drawn on the future of Geelong’s Ford plant or the company’s flagship vehicle, the Falcon.
Mr Graziano reiterated the company’s previous announcement of a $103 million investment to secure the future of the Falcon and Territory to 2016.
But he suggested the Geelong plant was crucial to Ford Australia.
“We can’t run Broadmeadows without Geelong and its stamping and powertrain capabilities,” he told the breakfast.
Mr Graziano said Ford’s future had attracted “intense media coverage in recent months”.
Motoring writers have cast doubt over the future of the Falcon in the face of dropping sales figures, down 22 per cent to 19,000 last year.
They have written that major manufacturers’ shift to “world cars” sounded a death knell for domestic Australian models.
Ford has admitted the future of Broadmeadows and Geelong factories had been under “scrutiny”.
Mr Graziano said Australian Government investment in the industry was a “modest” $17.80 per capita, way behind many other countries investing five or 10 times as much.
“This is an extraordinary and challenging time in the automotive industry and manufacturing generally,” he said.
“We have car showrooms stacked with product, which is great for the consumer.
“Australians have 62 brands and 360 models from 28 countries available compared to the US, which has 32 brands and 42 models.
“The new-car market has never been so good, selling more than one million units annually.
“But the level of competitive intensity is unmatched in any other major economy.”
Mr Graziano said the strategic importance of the automotive industry “must be cherished”.
He predicted the Australian market would grow to 1.3 million units annually, with more imports of Chinese and Indian cars.
