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MELBOURNE - Thousands more jobs could be at risk following yesterday's announcement by Ford Australia that 600 workers will be sacked when the carmaker closes its Geelong engine plant.
ACTU president Sharan Burrow warned as many as 3000 additional jobs in and around the Victorian city were under threat from the flow-on effects of a downturn in the local car parts and services industries.
"The prospect of major job cuts at Ford adds to substantial job losses at Holden over the past two years and thousands more jobs in the car components industry, which is heavily focused on Victoria," Burrow said.
Geelong's worst fears were realised with the confirmation that the engine plant will be closed in 2010.
While the federal and Victorian governments and Ford will contribute to a A$24 million ($26.6 million) fund to generate new jobs, there was little consolation for workers yesterday.
Ford Australia president Tom Gorman said the closure would allow the company to achieve production efficiencies and access global economies of scale.
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.
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, prompted the Ford decision.
"The Australian car market has fundamentally and permanently changed," Gorman said. "Our new engine strategy is a direct response to the lower manufacturing levels of locally produced large vehicles."
The new engine will be sourced from high volume US engine facilities expected to produce about one million engines a year by 2011, compared to the 70,000 a year at Geelong.
- AAP
