Writing in Australian Financial Review, economist and former Reserve Bank of Australia Board Member Warwick McKibbin has suggested that Ford, the No.3 car manufacturer may bring local production to a halt sometime in 2016. He cites high dollar, carbon tax and high labor costs the main reasons for the company to take such a drastic step.
Ford recently reduced production to 33000 vehicles per annum and has even laid off 440 of their workers. Stephen Longley, partner with PPB Advisory stated this fact of closure even though others are not discussing it openly.
Despite the fact that Ford recently received $34 million from the federal government and also cast from Victoria to continue with the process of manufacturing both Falcon and Territory in Melbourne, sales have taken a beating to such an extent that it is not possible for Ford to continue despite financial assistance from the Government. Ford's decision to shut shop in Australia will come after Nissan left in the early 1990s followed by Mitsubishi in 2008.
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