Ford’s Aussie Unit Hoping for Export to Increase its Profit
Ford’s money-losing Australian unit has announced last Friday its plan of boosting exports in order to become more profitable.
Ford Australia spokeswoman Sinead McAlary has told media, "Essentially, we are looking for a new manufacturing strategy that is going to set us up for the future. The alternatives include an export program."
Ford is currently Australia’s third ranking automaker by sales as of June 2007 but unfortunately its main plant in Melbourne is operating below capacity and according to reports from local media the possibility of closing an engine plant in Geelong, outside Melbourne that has started operation in 1926 is high.
McAlary also said, "There are a number of studies underway and I can't be specific about any of them. We have to become more efficient and we have to change our business." At present the buying trend of Aussies in terms of cars is shifting to smaller vehicles. Ford has already incurred a net loss of A$40.3 million for its 2006 fiscal year from a net profit of A$148.2 million in 2005.
Ford has currently a minimal export program of 7,000 vehicles destined for New Zealand, South Africa, and Thailand that is out of the total 81,500 locally made cars. But unluckily for Ford it was not been able to make inroads as fast as its rival Toyota Motor’s Australian unit which by the way has a very strong export program to the Middle East. As expected the three big automakers that are sharing in the Aussie market are Toyota with 22.2 percent, followed by General Motor with 14.5 percent and then Ford with 10.4 percent.
Ford Australia spokeswoman Sinead McAlary has told media, "Essentially, we are looking for a new manufacturing strategy that is going to set us up for the future. The alternatives include an export program."
Ford is currently Australia’s third ranking automaker by sales as of June 2007 but unfortunately its main plant in Melbourne is operating below capacity and according to reports from local media the possibility of closing an engine plant in Geelong, outside Melbourne that has started operation in 1926 is high.
McAlary also said, "There are a number of studies underway and I can't be specific about any of them. We have to become more efficient and we have to change our business." At present the buying trend of Aussies in terms of cars is shifting to smaller vehicles. Ford has already incurred a net loss of A$40.3 million for its 2006 fiscal year from a net profit of A$148.2 million in 2005.
Ford has currently a minimal export program of 7,000 vehicles destined for New Zealand, South Africa, and Thailand that is out of the total 81,500 locally made cars. But unluckily for Ford it was not been able to make inroads as fast as its rival Toyota Motor’s Australian unit which by the way has a very strong export program to the Middle East. As expected the three big automakers that are sharing in the Aussie market are Toyota with 22.2 percent, followed by General Motor with 14.5 percent and then Ford with 10.4 percent.
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