Ford Australia's Tough Times - But Light At End of Tunnel

Motoring Channel Staff - 22/August/2008

Melbourne, Australia — In shock news that has rocked one of Australia's largest car manufacturers, Ford Australia's President Bill Osborne has  announced his resignation.

The resignation of Ford Australia's President comes less than a day after the announcement that 15 per cent of its workforce would be let go, which will amount to between 300 and 350 job losses.

John Parker, Ford Motor Company Executive Vice President of Asia Pacific and Africa, said that Bill Osborne had elected to leave the company, effective September.

"Bill has made significant contributions during his career with Ford Motor Company, and we wish him and his family all the best with his future endeavour," said Parker.

"Ford Australia will continue to play a vital role in the future success of Ford Motor Company and within the Asia Pacific and Africa region, with greater input and alignment across all areas of the business, particularly product development, information technology, purchasing and marketing and sales," stated Parker.

Bill Osborne previously held the top job at Ford of Canada, and had held the Ford Australia job for only six months. 

He is believed to have left the automotive industry to pursue a new CEO role.

Ford Australia is slowing down its manufacturing processes, which will result in the downbalance that will see a percentage of workers leaving the company from November, despite the new Falcon taking a larger slice of the large car pie.

The new FG Falcon's market share up from 22 to 33 per cent.

The move is in line with slowing new car sales across the Australian car market place in the second half of the year.

The downsizing also comes not long after the release of the Federal Government's review of Australia's automotive industry, which was conducted by Steve Bracks, and recommends reducing the import tariff from 10 per cent to five per cent in 2010. Ford representatives say this report had nothing to do with the layoffs.

Ford will face some tough times in the next 18 months, but there's light at the end of the tunnel.

In 2010 it will begin using new V6 engines in its Falcon, and in 2011 the company will begin producing the Ford Focus locally, which will add up to 40,000 cars per year and is expected to result in more jobs.