‘No jobs’ from $53m handout

By John Van Klaveren
THREE-HUNDRED Geelong jobs promised as part of a government bailout of Ford Australia have failed to materialise, a company spokesperson has confirmed.
Federal Government funding of $34 million and a state contribution of around $19 million were supposed to guarantee 300 design jobs in Geelong.
“The Prime Minister Julia Gillard and Industry Minister Kim Carr made comments that there were 300 extra jobs,” the spokesman said.
“But the Ford media release did not say there would be incremental positions but that the package secured 300 existing jobs.”
Ford Australia manufacturing vice-president Alan Holly was quoted at the announcement as saying the investment would provide direct employment for 300 during design and engineering phases.
But Ford last week announced 440 redundancies, including 220 in Geelong.
Ford blamed the redundancies on reduced Falcon sales, scaling production back from 209 vehicles a day to 148.
The Independent reported in May that Ford had revealed its worst recorded loss, $290 million. Ford said it would continue making “tough decisions” to return to profitability.
The loss followed slumping Falcon sales, down 36 per cent to 18,741 units last year. Falcon averaged 1100 sales a month this year, suggesting only 13,500 units would sell in 2012.
Hopes for a sales boost from the new four-cylinder Falcon were dashed as the model ran foul of government fleet-buying guidelines.
Federal Government fleet purchased two four-cylinder Falcons. The car failed New South Wales Government fleet rules on environmental grounds.