Damon Mcknight
Ford Motor Company of Australia, a subsidiary of Ford Canada, began manufacturing cars in Australia in 1925. However, in 2013, Ford announced it would be leaving the Australian market after 88 years, with the final vehicle, a Ford Falcon, rolling off the assembly line in October 2016. This decision came as a result of uncompetitive manufacturing costs, lacklustre sales, and the demise of the local car manufacturing industry. With the closure of its Australian operations, Ford shifted to importing cars and trucks for the Asia-Pacific region.
| Characteristics | Values |
|---|---|
| Year Ford stopped making cars in Australia | 2016 |
| Date of last car produced | 7 October 2016 |
| Model of last car produced | XR6 Ford Falcon |
| Number of years Ford made cars in Australia | 91 |
| Date Ford began making cars in Australia | 1 July 1925 |
| Initial model produced in Australia | Model T |
| Number of factories in Australia | 2 |
| Locations of factories | Geelong, Norlane; Campbellfield, Broadmeadows |
| Number of staff affected by closure | 1200 |
| Reasons for closure | Uncompetitive manufacturing costs, lacklustre sales, falling demand, market fragmentation |
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What You'll Learn
Ford Australia's history
Ford Australia, a subsidiary of Ford Motor Company, began its operations in 1925, with its headquarters in Geelong, Victoria. The first Australian-built Ford, a Model T, was launched on 1 July 1925 in a disused Geelong wool storage warehouse. During the construction of the Geelong plant, Holden's Motor Body Builders Ltd (now Holden) supplied vehicle bodies for Ford Australia.
In 1928, Ford Australia transitioned to the Model A, which was followed by the Ford V8 in 1932. During the Great Depression, Ford Australia catered to the demand for "working" vehicles by introducing a coupé utility based on the US Model A Ford "Closed Cab Pickup Truck". In 1939, Ford Australia contributed to the war effort by producing seagoing vessels, landing crafts, cargo boats, workboats, and winches, among other things.
Post-World War II, Ford Australia recommenced assembly of imported Ford models, including the UK-sourced Pilot and a range of British cars like the Prefect, Anglia, Consul, Zephyr, and Zodiac. In 1956, Ford Australia bought a large tract of land in the northern Melbourne suburb of Campbellfield to build the Broadmeadows Assembly Plant, which became the company headquarters in 1961.
The Ford Falcon, originally a US model, was introduced in Australia in 1960 and adapted to Australian requirements and road conditions. From 1972 to 2016, Ford Falcons were fully Australian-designed. Ford Australia also produced a range of full-size luxury cars, including the Fairlane and the LTD. In 1981, Ford Laser production began in Ford's plant at Flemington in Sydney, and the Laser was replaced by the Ford Focus in 2002.
In 2013, Ford Australia announced its departure from the Australian market due to uncompetitive manufacturing costs and poor sales, ending its 88-year history in the country. The final vehicle, a blue XR6 Ford Falcon, rolled off the assembly line in October 2016, marking the conclusion of Ford's factory operations in Australia. Since then, Ford Australia has been importing cars and trucks for the Asia-Pacific region and functioning as a Regional Product Development Centre for this region.
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The Ford Falcon
Ford Australia was formed as a subsidiary of Ford in Canada, which had controlled imports into the country since 1905. Ford Australia started by assembling Model Ts, and over the years, introduced new models that were assembled in Australia. The Ford Falcon, a full-size car manufactured by Ford Australia, was produced from 1960 to 2016. It was originally a US model introduced in Australia in 1960 and adapted to Australian requirements and road conditions. The Falcon was manufactured in multiple facilities across North America and Australia, with the Australian-designed Falcons being produced from 1972 onwards.
The Falcon marque included various body styles, such as sedans, vans, and small trucks, all bearing the Falcon emblem. The Falcon was also known for its sporty convertibles and V-8 powered cars. The Falcon's popularity peaked in the early 1960s, with over a million sold by the end of its second year. However, it gradually faded away by 1971 due to corporate marketing neglect and the rise of competitors such as Volkswagen. Despite this, the Falcon continued to be a significant model for Ford Australia, with over 3 million units produced over seven generations.
In 2008, Ford introduced the "One Ford" product development plan to rationalise its global range, which led to the end of local production of the Falcon in 2016. The final Ford Falcon, a blue XR6, rolled off the production line on October 7, 2016, marking the end of Ford's car manufacturing operations in Australia. The Falcon's indirect replacements in Ford's global range included the fourth-generation Mondeo from Europe and the sixth-generation Mustang from North America.
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Ford's Australian factories
Ford Australia was one of Ford's five product development centres globally. It had two main factories, both in Victoria, located in the Geelong suburb of Norlane and the northern Melbourne suburb of Campbellfield. The Geelong factory was also the location of Ford Australia's headquarters.
Ford Australia's first products were Model T cars assembled from complete knock-down (CKD) kits provided by Ford of Canada. The first Australian-built Ford was a Model T launched on 1 July 1925 in a disused Geelong wool storage warehouse while construction was in progress of a factory several miles away, in an area later renamed Norlane. In 1928, the factory switched to the Model A, which was followed in 1932 by the Ford V8. During World War II, Ford Australia ceased producing cars to begin military production to support the war effort.
In 1956, Ford bought a large tract of land in Campbellfield to build the Broadmeadows Assembly Plant, which became the company headquarters in 1961. The Broadmeadows plant made the Falcon and Falcon Ute along with the Territory and certain performance vehicles.
In 2013, Ford Australia announced that it would leave the Australian market after 88 years due to uncompetitive manufacturing costs and lacklustre sales. This announcement came after the company reported losses of A$600 million over the preceding five years, resulting in 1200 staff losing their jobs. The last Australian-built Ford, a blue XR6 Ford Falcon, rolled off the production line in October 2016, marking the end of Ford's 91-year history of car manufacturing in Australia.
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Ford's financial losses
Ford Australia incurred significant financial losses in the years leading up to its decision to cease manufacturing operations in Australia in 2016. The company's financial troubles were characterised by declining sales, uncompetitive manufacturing costs, and restructuring expenses.
In 2011, Ford Australia reported a post-tax loss of $290 million, marking the company's biggest annual deficit on record at the time. This loss was attributed to plummeting sales of its Falcon large car, which resulted in a net operating loss from revenue of $2.8 billion for 2011, down from $3.3 billion in 2010. The Falcon, a well-known model adapted to Australian requirements and road conditions, struggled to maintain sales in a changing market. This loss also included tax losses from previous negative financial years, as well as one-off restructuring costs.
The financial woes continued into 2012, with Ford Australia reporting a loss of $141 million after tax for the 2012 financial year. This loss came on the back of two consecutive years of modest profits and a challenging economic environment. The company's financial report revealed a total loss of $600 million over the preceding five years, highlighting the sustained nature of their financial troubles.
The losses incurred by Ford Australia were not an isolated incident within the broader context of Ford Motor Company's global operations. In 2007, Ford surprised Wall Street by posting a $2.7 billion loss for the year, despite a positive second quarter. This loss was largely attributed to finance restructuring at Volvo, one of the brands under the Ford Motor Company umbrella. Additionally, in 2008, Ford reported a record loss of $14.6 billion for the preceding year, further demonstrating the financial challenges faced by the broader organisation.
The financial losses at Ford Australia ultimately contributed to the decision to end manufacturing operations in the country. In May 2013, Ford Australia announced its departure from the Australian market, citing uncompetitive manufacturing costs and lacklustre sales as key factors. This decision resulted in the closure of its manufacturing plants in Norlane Geelong and Broadmeadows Melbourne in October 2016, marking the end of Ford's 88-year history of car manufacturing in Australia. The closure affected 1,200 workers, with approximately 600 manufacturing jobs lost and another 120 retained temporarily for the plant decommissioning process.
The financial losses experienced by Ford Australia and the subsequent closure of its manufacturing operations had a significant impact on the Australian automotive industry and the lives of many workers. The company's efforts to restructure its operations and adapt to changing market demands, such as the shift towards more fuel-efficient vehicles, were ultimately unable to prevent the financial decline that led to their exit from the Australian market.
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Ford's new model offering
Ford Australia was one of Ford's five product development centres globally. Since the end of its factory operations in 2016, it has been importing cars and trucks for the Asia/Pacific region. Ford Australia was designated as one of five full-service Regional Product Development Centres for the Asia Pacific and African regions.
Ford Australia has a rich history, starting as a subsidiary of Ford in Canada, which had controlled imports into the country since 1905. Ford's first Australian construction plant was built in Geelong in 1925, with the first Australian-built Ford, a Model T, launched on 1 July 1925. Over the years, Ford Australia introduced various models, including the Falcon, produced from 1960 to 2016, and the Territory SUV, which ended production in 2016.
In 2013, Ford Australia announced it would leave the Australian market due to uncompetitive manufacturing costs and lacklustre sales. This decision resulted in significant job losses and the closure of factories in Geelong and Melbourne.
Despite Ford's exit from Australian manufacturing, the company continues to innovate and develop new models globally. Ford has an impressive lineup of new cars that offer customers fuel economy, cutting-edge technology, safety features, and outstanding performance.
One of Ford's latest offerings is the 2025 Ford Expedition® and Expedition® MAX models, designed for family adventures and equipped with features to create lifelong memories. Another upcoming release is the F-150® STX with the F-150 Lobo™ Package, expected to arrive in fall 2025. This model is described as a "badass street machine" for those who thrive in the city after dark.
Ford also offers the 2024 Ford Bronco Outer Banks model, which showcases optional equipment and extra-cost colour options. Additionally, Ford has established itself in the market for hybrid and electric vehicles, SUVs, crossovers, trucks, and vans. The Ford F-150 truck, for example, is a versatile vehicle suitable for both work and weekend fun.
With a focus on customer satisfaction, Ford provides exclusive price savings through its Build & Price shopping tool, allowing buyers to customise their purchases. Ford also offers various pricing plans, such as the A/X/Z Plan pricing options, which are available to eligible Ford Motor Company employees, their friends and family, and eligible partners.
Overall, Ford remains a dynamic and innovative automotive brand, continuously expanding its global presence and vehicle offerings to meet the diverse needs of its customers.
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Frequently asked questions
Ford stopped making cars in Australia in October 2016.
Ford stopped making cars in Australia due to uncompetitive manufacturing costs and lacklustre sales.
The last Ford car made in Australia was a blue XR6 Ford Falcon.
Ford made cars in Australia for 91 years since the Model T went into production in 1925.
