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MELBOURNE - Ford will announce the closure of its Geelong engine plant today, wiping out up to 600 jobs, Industry Minister Ian Macfarlane has confirmed.
It's believed Ford will cease manufacturing its locally-designed in-line six cylinder engine, fitted to its Falcon and Territory range, replacing it with an imported V6 engine.
A downturn in large car sales and a planned cut in tariffs on imported cars from 10 per cent to 5 per cent in 2010 and tougher new car emissions standards also due in 2010 have prompted Ford to consider the move.
Mr Macfarlane told Fairfax newspapers he expected the announcement today.
"We're certainly conscious that Ford are giving consideration to moving to a V6 engine and that they will make an announcement in that regard tomorrow," he said.
But when asked if the government would offer financial support for the plant, Mr Macfarlane said only that it had already handed Ford US$80 million ($102.4 million) in the past two years to improve the local engine's efficiency and to assist with the new generation Falcon, to be released next year.
Ford Australia spokeswoman Sinead McAlary said the company was close to making an announcement.
Ford Geelong shop steward Brendan Sexton said workers were pessimistic.
"I'm 90 per cent certain that the company will announce that the plant will be shut down and be replaced by an imported V6," he told Fairfax.
Ford Australia was first established in Geelong, Victoria's second largest city, in 1925.
- AAP
