Ford Motor Company (NYSE:F) will be closing its Australian doors by the end of 2016 having rolled out its last unit of a two-door coupe utility vehicle on July 29 in Melbourne. Hostile manufacturing costs, weak sales, as well as losses of AUD$141 million and AUD$290 million, are some of the quoted factors that are the company says are contributing to its exit from the Australian market. Apparently, the automaker has already axed out the Falcon Ute which signals the beginning of Ford’s Australian shut down before Falcon sedan, and the Territory SUV can follow in October.
It has taken Ford Australia 55 years to kill off the Falcon Ute. However, a white XR6 model which is the last Falcon’s Ute will be retained in the company’s fleet of cars for purposes of displayed at events and in museums. The utilitarian machine is an aspirated 4.0-liter straight-six engine with 195 kW and 391 Nm of torque on tap.
What follows Ford’s Australian shutdown?
One very direct effect is the loose of jobs for about 1,200 people. The brand would also lose its existence of 90 years on the market. Australians will also suffer a big blow given that they will no longer be able to buy locally built Fords. Importation will now take effect with Ranger pickup truck, which is produced in Thailand coming in handy to replace Falcon Ute.
Apparently, General Motors Company’s (NYSE:GM) Holden, another Australian car manufacturer is also shutting down its Australian production in 2017. Toyota Motor Corp (ADR)(NYSE:TM) follows suit with a closure of its Altona plant and Camry assembly line in Victoria at the end of 2017.
Whether or not the automotive industry is ailing remains a mystery to unravel given the many closures of production units. However, there are those that are still holding up to the flagship of production despite the unfortunate occurrences. Nonetheless, the market will dictate the next move for the industry.