Ford could lose Focus over $20M
February 6, 2008 by Matt Brogan
Labor is planning to withdraw some $20 million of a grant promised to Ford Australia by the former Howard government which could now jeopardise plans to build an new four-cylinder engine line (for the coming Focus range) at its Broadmeadows plant.
The grant of some $52.5 million for special assistance was announced in May 2006, and which Ford has already received about $32.5 million. But the remaining $20 million was not due to be paid until late 2009.
The money was intended to help start production on the new Falcon project (known as ‘E8′ – the V6 powered 2010 model) but Ford sought to alter the agreement so the money could be spent on developing the four-cylinder Focus.
Production of the Focus, Ford’s first locally-made small car in a decade, is due to start at Broadmeadows in 2011, creating 300 jobs, but the new contract between Ford and the Government was not formally amended before the November federal election, creating a loop-hole for the Rudd Government to now withdraw the funding.
Ford now has legal grounds to sue (breach of faith) which has been backed by the Australian Government Solicitor.
Print it: 
wow duck, dont suddenly start being biased now.
^^^^^^How am i being biased?
Terrible Duck!!!! Your attitude towards Ford wern’t that friendly! :D LOL!
I dont like ford thats all!
UP YOURS HOLDEN LOVERS, after reading some of these comments makes me think dudd rudd supporters are mostly Holdenwoo drivers, no wonder rudd looks after Holden, their union looks after Labors financials, while giving Ford the red finger because it needs a grant to build an aussie 4 cylinder, bloody sad tight lip idiots.. Labor has copied policies from libs across the board, the only reason labor won is because the need for change campaign and kyoto greenhouse sign up, we have become a green nation with no proven substance or action, what is everyone in Australia doing about climate change would it be any different if Howard was still prime minister, here is Ford Australia trying to build a greener car, but then shoved back in their face with the excuse labor won’t finance any longer…GET REAL government Australia look after your own backyard before it spits you out, otherwise we will bite back where it hurts..
Rudd please pull ya finger out of ya thick ear wax, ok you have won the election, bout time you listen to the working public not just the unions.. WAKE UP PAL !!!!!!!!!!!
aarr, the sound of sore losers still ringing in the air after the election. ^_^
Din’t labor win by a landslide!? just checking as you would think not…
Kelvin,
Just a correction to your missguided version of history, but it was in fact Hawke/Keating that instigated tarrif reductions not Howard. Howard actually delayed the original program by some years.
And as far as “propping” up the industry, many many industries are treated the same, not just manufacturing.
If any one thinks we can support four manufacturers (now three) in Australia then they need a reality check. The simple facts are that Ford’s proposal to manufacture the Focus locally does not add up. Ford will NEVER achieve the volume necessary for this to be viable. What I am alluding to is that within a few years there will be two manufacturers in Australia. Holden and Toyota. FACT.
Because you say so, that makes it FACT huh? Anyone can type “FACT” at the end of their statement (opinion).
The volume for Focus would include exports to all countries that South Africa currently exports to. Volume for Australia would be too low (at least until the general public finally recognises a quality small car that isn’t a Toyota), so they are obviously taking exports into account.
According to all the “doomsayers” Ford may close OZ ops within a decade. Maybe they will, if they do not I will laugh at all these “predictions”.
TP,
you want the playing field with no hand outs???
well that also means you dont want an auto industry in australia whether it be holden, ford or even toyota.
you need a reality check if you honestly think toyota never seeks protection from the government in terms of funding or maintaining tarrifs.
all you guys obviously dont know that government incentives to industry whether it be automotive or even picking tomatoes are part of maintaining an economic balance.
up here in QLD Peter Beatie (the premier who just retired) had dragged many companies up here to settle from aluminium products, to tyre manufacturers and many more.
and guess what????? they all got pretty big carrots waved under their nose!!!!!
it is common practice for the government to fund the development of a company in order to bring them to a certain area and in turn a plethra or jobs for thew citizens in their district.
even in retail it is common practice for councils and developers to offer say 10-20 yrs FREE rent to large supermarket chains in order to attract shoppers and smaller retailers. and commercial rent on a small site can easily be 2K a week for around 100m2.
so just do some quick math on what the council cops to have a large retailer move in for 20yrs…….
some people need a reality check
Andrew yes I want a level playing feel… and yes Im well aware that could mean the end of the auto industry in Australia. Is this a big issue? I already coverd this ages back that for the economy it would be better, cheaper cars which result would save conumsers money along with an import industry offsetting the effect of the loss of jobs in the aussie manufacturing industry. Look at the U.S, a WRX is like $30k their compared to $40k here. A top of range Lancer is $20k their, $30k here. List goes on… this is linked to the protection that exists in Australia.
TP,
import tarriffs have been dropping for years yet our vehicles have not been getting cheaper. how about you do a report and tell me why that is?
if tarriffs go we wont get 30K rex’s. SIMPLE.
you would be silly to think we would.
hey but even if we did, do you see it more important that we all drive around in new flashy cars sending the profit overseas whilst we all sit on our hands getting government hand outs? hey but when lots of people are out of work, who is going to pay taxes to fund the unemployment scheme.
oh but wait…….you just want cheaper cars ha ha ha ha
Mate protection still exists…. government handouts havent realy gone down… their still isnt a level playing field. Mind you sure prices havent gone down but features offered have, their HAS been an increase in competition in the market.
mate, firstly re read what you posted. i think you made an error as it would have contradicted your stance on the issue RE….. features gone down????
import taxes have gone down.
mostly, handouts exist if you develop something. what has toyota developed in AUS? bugger all……. so I’d be upset if they got more than ford and holden.
just clarify this to me…….
why do you want the Australian Auto Industry to be abolished?
Is Melbourne going off the boil ?
First we lose the F1 and now Ford may not build the Focus, there are going to be lots of jobs on the line, directly and indirectly, and with interest rates on the up and up, Queensland is looking better and better each day.
Nissan – Gone !
Mitsubishi – Gone !
And then there were 3……..
Who is now the weakest link ? GOODBYE.
Lets hope none……..
So what was the first 32million used for? Blowing farts?