Ford drives off sale speculation

By ELLEN READ

Ford New Zealand is scoffing at rumours that part of the company is to be sold and says it is business as usual at the Manukau alloy wheel plant.

"It's not surprising that there are rumours around because there have been over the past couple of years - but at the moment we're not aware of anything. Surely, we would know," said Ford New Zealand's public and government affairs manager, Lisa Franklin.

Dow Jones Newswires reported yesterday that Ford Motor Company was in advanced talks to sell part of its New Zealand operations to a US engineering firm for $US500 million ($1.1 billion).

"That's just crazy, it's a tiny operation in Manukau. We've only just ramped up to 1.8 million units so if you did a few sums you'd realise that," Ms Franklin said.

The Manukau plant was a viable business and often attracted sale speculation, but Ms Franklin could offer no explanation for the latest rumour.

"It's just every now and then these things surface and I guess that's a by-product of being a successful operation."

Despite facing closure in the early 1980s after the demise of its original transmission manufacturing and assembly operation, the Manukau plant - which employs more than 550 staff - has more than doubled its foreign-exchange earnings in the past three years to $135.8 million a year.

The plant's main line continues to be alloy wheels - 95 per cent of which are exported to the US. The rest go to Australia.