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Ford closure sends shockwaves through manufacturing industry

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May 24, 2013
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Following the announcement that Ford Australia will but shutting its Broadmeadows and Geelong plants in 2016, Kris Bondin from Bills to Pay joined Ken and Lucy to give an overview of the situation.

In the past 12 months, Ford have lost $140 million, with $600 million being lost over the past 6 years. For any business, loses such as these cannot be sustained over a long period of time. Therefore, Ford will no longer be producing motor vehicles and as a result, 1,200 people would have lost their jobs by 2016.

The unions will be heavily involved over these discussions, as large amounts of employees have been working at Ford for over 20 years and are entitled to some financial payment. Thankfully, these employees do have a bit of time to plan ahead and ensure that their finances will not be severely affected.

In terms of the future of the industry, motoring experts have stated that by the end of 2020 there will be no motor vehicles produced in Victoria and Australia. Not only will this affect both Ford and Holden, it also will affect businesses that support this industry.

Julia Gillard has come out and said that she will support the people affected, but the question remains whether or not she will be able to fund these now jobless individuals when her primary focus continues to lie within education reforms.

If you missed this morning’s interview, be sure to tune in below.

Also, if you or your family need debt help and guidance saving, contact Bills to Pay for a no obligation FREE consultation on 1300 566 729.