SYDNEY, Feb 6 (Reuters) – Ford Motor Co said on
Thursday it would cut production in Australia by one third with
about 300 jobs to go in June, spurring worries the carmaker may
exit the country sooner than its planned 2016 deadline.
Last year, Ford announced plans to shut its two Australian
plants in October 2016, blaming a strong currency and high costs
that are hitting manufacturers.
The country’s auto industry was hit by another blow in
December when General Motors Co said it too would stop
making cars in Australia by 2017, leaving Japan’s Toyota Motor
Co as the sole global automaker producing in Australia.
“We are continuing to match production with demand and that
will mean we are reducing production by about a third in June
with related job losses,” company spokesman Wes Sherwood told
reporters, citing lowering sales.
“We’ll continue to work with the teams to get into the exact
details but it will be about 300,” he added.
Ford, which started making cars in Geelong, Victoria in
1925, currently produces 133 Falcon and Territory cars per day
and will reduce that to around 80 in June.
The decision raised concerns that the company might speed up
its shutdown process sooner than planned.
“I personally would not be surprised if we see a quicker
slowdown or reduction than was first envisaged,” Victorian
Automotive Chamber of Commerce executive director David Purchase
told local media.
Sherwood said Ford intended to produce through October 2016,
but would “re-evaluate” the plan if there were major
disruptions.
